NY startup Mixaloo wants to make the experience of purchasing music online more social and rewarding, both emotionally and financially.

The company is taking a phenomenon - the mixtape - that has spanned several decades and media formats - 8 tracks, audio cassettes, CDs, and MP3 players - and bringing it to the web.

As a Mixaloo user, you can create playlists of music from all the major record labels, including Warner, Universal, EMI, and Sony. You can then share these playlists with friends via email, or you can embed playlist widgets into your website, blog, personalized homepage, or social networking profile. Mixaloo widgets can be added to your various online properties

To make a mix is free, but your friends will need to pay for the whole mix if they want to hear more than 30-second preview clips. The songs are 99 cents each

Cool huh!