Hmm, that must be a common problem with those players, I just repaired one of those for a friend, found it was a combination of a cold solder joint and a little bit of oxidation inside the headphone jack. I repaired it by opening it up (which I must add was incredibly easy-- Thanks SanDisk!), remove a few screws, remove the memory card, re-solder the solder pad, try headphones after that, if that didn't fix it, use something slightly abrasive to clean the internal contacts of the headphone jack and it should be as good as new! If that sounds like too daunting of a task I'd be willing to buy it off of you and repair it myself :)
Bryan, March 2007