Foxonix is an interesting way to add sound to your projects. It is able to record up to 3 minutes of high quality audio and is perfect for embedding sound in a stuffed animal or on a robot. The project appears a bit expensive, but there is some initial cost for the development board that is use to program the smaller project boards. Once they reach production the project boards should cost around $15 each.
Check out the Kickstarter at: Foxonix Embedded Sound: Make Your Ideas Heard