Bought a Rio Karma the other day solely b/c of the flac support, and so far, I'm very impressed w/ it. It supports gapless playback, which is pretty unique (I think very few players support gapless). It doesn't have any inputs, so you can't record to it, but if you are looking for a neat way to carry 20gig of flac files around to playback, it's a hell of a deal.
mitch