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LG has launched a twin brother to the Sony Ericsson W350i, the KM380 which is also a music phone. LG says its sound has been tuned by Mark Levinson, who i frankly don't know and haven't tried to find out.
It has EDGE and 3.5mm headphone jack, a 2" screen and capacity to expand the memory upto 32GB with Micro SDHC card. No Reviews out yet on the sound. will keep looking though.
Available for Rs.7,499 at cafegadgets.com, which is the MRP. You might as well wait for the price to fall, to between 5-6k, in a few months.