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I have one of these and it has worked well. I was hoping one of your photos might show the battery. Although mine works fine, I may want a battery replacement one day. This unit appears to be a knock off of the 2nd generation (I think) iPod Shuffle. Amazon actually sells replacement battery kits for the iPod with a tool and instructions. I suspect the battery and placement in this are the same. The USB connection on the unit is the same as a Blackberry charger.
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I added a bleeder resistor in-line to drop the charger output from 500 mA to about the recommended 350 mA. It gives me more options when I travel with it. Your repair is clever.