FLAC is certainly gapless on Karma.

I know. That's why if the iPod could get this it would have the best of everything (for me.) It would have:

Lossless
Large Capacity
Great Styling
Robust Construction
Gap-less Playback

On second thought, there is still the battery life issue.

Now if a higher capacity Karma would come out I'd buy go to the store immediately. Capacity is all that is holding me back. I don't care about a color LCD (which is rumored in the next gen Karma.) In fact I hope that if a color LCD would decrease the battery life, Rio would stay away from it. The construction issue is a little doubt-inducing, but easily correctable with an extended service plan.

Just my 0.5 cents!