This post won't have many supporters, but I looked at an IPoD about a year ago, and at the time there was a 20GB Recorder HD MP3 player that Archos made (see this Amazon link), and when combined with the open source Rockbox software, and using the highest VBR settings on Exact Audio Copy (with Lame encoder), I found this Archos model to be far superior to the IPod which I used side by side...and cheaper.
I ended up returning the IPoD to my friend, and buying two of the Archos which has worked flawlessly for the last 18 months. I easily upgraded the HD to an 80 GB HD which allows me to hold a shitload of my 6500+ CD's. With the Etymotic ER4P/S or Sennheisser HD-600's (with HP amp), I cannot tell a difference in quality of sound output from the original CD, and cannot imagine that the Sony MZ-NH1 would sound any better, but don't know since I have never owned a MD player.
Now, I'm looking at the new MZ-NH1 purely for .wav recording of my own music and/or at live shows. I also have used the Sony PCMM1 DAT recorder, but I want more portability and digital USB-2 upload capability.
I do want to make sure that Sony get's the Sonic Stage revised to make sure that works before buying it. Any updates on that revision that is supposedly coming out this fall? I'm still amazed that there are no other portable products that you can buy that allows .wav recording. (I'm not interested in luggin my laptop around which would record as .wav format.)