I am building my MPGuino with a dorkboard (328) (I like that it is small and minimal).
It was $10 + $2 shipping (
I bought this one)
I plan to connect the LCD to the rest of the system with wires or ribbon cable, depending what I find.
I still have yet to decide on exact layout and what type of LCD to use, I also had the idea to modify the code to display info coming in over serial from an ipod (maybe just Title and Artist).
EDIT: DCB, I would be interested in helping continue the growth of this project, I have a EEEPC 900A (Atom 1.6GHz) with EEEbuntu, I am using Arduino 016 IDE ATM, but am very willing to learn what I need to so I can program the board without the arduino environment.