Well, just received it today, it can play FLAC, so I'm pretty impressed by that already. The interface is a bit like an iPod with a light touch on a surface moves the focus from file to file or what-have-you. The video play back is actually pretty good as well.

But, the biggest thing is the quality of the playback. It's driven by a wolfinson audio chip and sounds very nice. Far better than a newer generation iPod.

For 85.00 (4GB) it's a nano killer with all the additional features (voice recorder and fm radio etc), audio quality, and price point.

Combined with my Head-Direct RE2 IEM's, it sounds pretty amazing!