Well, first it failed to to install from here (), had to install Python (http://pymaemo.garage.maemo.org/installation.html). Then apt-get install kagu.
For me Kagu's UI is not convinient as I prefer Media Player style UI. There are only 2 things I enjoy: 1. Pause on headset button and headset eject (which is really cool). 2. Correct interpretation of cyrillic letters in ID3 tags (Unicode only, no CP1251 support).
For #1 there is a utility which works with Media Player and requires some tuning for MPlayer: http://talk.maemo.org/showthread.php?t=21182
For #2 there are some players with Unicode ID3 support.
And yes, it does load CPU hardly.