My friend's sister works for Creative Europe and I played about with a prototype one of these a while back.
It's quite nice but it still feels "cheap" compared to an iPod because it's made of plastic. It's still not quite pocket sized though in my opinion, not unless you have really big pockets. Sound quality was good though and it's got the gimmicky EAX stuff still which I've yet to find anybody using for more than 5 minutes
If you accept it's not going to be an iPod replacement then it's a good HD based player which also records.
I can't really comment too much on the actual user interface as what I was using wasn't the finished product and I've not tried an actual one.
- Trevor