The Tascam DR2d, $185 retail and like the Zoom H4N can record 4 channels.
If you only need 2ch and are still spending ~$300, I'd go with the Sony M10 over the Zoom H4N. All based on what I've read anyway, never ran either. But I've run the Sony D50 for years and if the M10 is anything like it (sounds like it is from the posts about it), it is a very nice recorder.
Edit: Cancel that, somehow I thought the M10 was like $300, not $230. If you only need 2ch, go with the M10, if you want the option for 4ch in a handheld, go with the DR2d.