I have an Ipod with 16 Gbs of memory. I have at least a dozen or more unabridged books on it and I have lots more room.
Mine will resume where I left off.
I don't know anything about not using earbuds though. Mine will play w/o them but I don't like the sound.
I suggest you try them out before you buy anything. Mine is an Apple and i love it.
Hope this helps :)