Waterproof? Plastic wrap (I think you guys call it saren wrap) is one solution that a friend has come up with because he can wrap it around the handlebar and radio all at once and get a good seal. Otherwise a plastic bag. But it does influence how you attach the radio to the stem/handlebar. Otherwise, I popped mine into the handlebar bag if it rained. I used both the main speaker and earbuds depending on the wind and traffic noise.
I acquired mine on my Perth-Adelaide trip back in 1997; as the date implies, it was rotary tune, extendable chromed aerial, and no digital, but it did have AM and FM. It was a great companion and I used it a LOT in training rides as well as touring, and on occasions it saved my sanity in Europe in 2003 as I listened to the Rocket radio station from Holland -- classic rock in English!
I left the radio behind when I left Tasmania a several years ago, and sort of regret it. I have had small pocket radios with just earbuds, but they don't have the pick-up power of a larger radio. I attached it to the stem using zip ties -- it's a bit difficult to describe, but it worked!
And unless you have a really big MP3/iPod player with space for several thousand songs, the selection of music starts to become limited after... oh... three days. And I've found scrolling through song lists to be tedious, too.