Get both!
I got an H340 and soon to to have the R-09. Then you have a back-up (if you have external mics), the extra features of the iRiver, and I just read some tale of using the 340 as a USB host? Haven't tested this yet though... I got my H340 on e-bay for about $250...
with regards to the settings, seems like it would depend on external mics, what you are recording, etc....