So I'm looking for a portable recording device and I'd like you recommendations.

I want to quickly and easily record myself while I am playing and coming up with a new riff or whatever. This way I can play it back later and work on it or play it to my buddies.

I tried a cheap voice recorder and it sounds like crap.

Headphone playback would be cool.
USB interface to the PC would also be cool.
I'd prefer not to have to add a separate mic.
I don't always have my PC available so I don't want to mess with recording with that.

Price range $50 to maybe $150.

I would recommend NOT getting a Boss MICRO BR. The thing ain't bad, and it gives you a lot of options, but there are just a few serious drawbacks to it that really take it out of the game.
First, if you've developed a fine ear for high quality timbre then you'll quickly become dissatisfied with the BR and it's vastly mediocre tones.
Second, it's a pain in the ass to set it up to use the actual microphone on it, in terms of actual placement and elevating the device and angling it and all.
Lastly, you'd have to buy more memory for it if you want more than 128 mb of storage space on the SD card it comes with, although, that card can hold a DECENT amount of stuff.

Otherwise, it isn't such a bad player, but I'd still recommend something else instead, there's got to be better ways to go.
Has anyone tried connecting a mic to an iTouch and recording that way?