arduino mp3 playback with nokia LCD display

Hello.

I am creating an mp3 player for a university project. The protoype:

  • must have 4 custom navigation buttons (http://www.cherrycorp.com/english/switches/key/mx.htm) using these mechanical keyswitches.this feature is critical.
  • must have an LCD display to display simple custom graphics of menus (I have this one in mind: http://www.sparkfun.com/products/8600 )
  • play a selection of mp3 files from an SD card.
  • output audio to a headphone jack
  • dedicated 2-way volume control
  • possibly have a battery for mobile use testing
  • must be handheld. I'm looking at a space of 50 x 90 x 40 to fit components

What approach should I take this? I have seen some comments regarding using ump3 uMP3 Playback Module – Rogue Robotics
would an arduino nano be appropriate for this?
Any guidance would be mostly appreciated.
If you need to know more details let me know.