Yep, the 2009 has a CF player option as part of the Nav and an iPod interface instead of the USB interface.
I don't understand the 2.5" versus 3.5" question - CompactFlash doesn't come in those sizes, it comes in Type I and Type II - CF Type I is 3.3 mm thick and CF Type II cards are 5mm thick.
Since we are limited to 512 songs, anything over a 4GB card is probably wasted, and you can probably get by with a lot smaller, depending on your MP3 bit rate.
I use mine for my Christmas music.
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