Forgetting its recording shortcomings, this unit supports flac playback and basic research strongly suggests that it lacks the reliability/flimzness problems of the rio karma.
Plus, it is a "universal external device" meaning it can be plugged into the usb port on any modernish computer and be automatically recognized as an external drive with all of its contents accesable. Plus, it will recharge via the usb cable.
Sounds like just the playback device I've been waiting for.