Karma.... hands down. The Jemplodish (take that IEspell!) software riding in the Karma sells me.

The thing is, at $399 is the Karma's software/physical dimensions going to sell me over the function and possibly inexpensive upgradeable nature of the RCA Lyra or the more expensive Archos AV300?

Inquiring minds want to know...
PS: Check out the 3D views of the Archos. The camera attachment is rather clever.