To me, this product outruns any ipod or creative by a long shot. Plenty of hard-disc space means never ending video shoots, photos, songs etc. The video quality is not fantastic, but it is smooth, not jumpy, colours are bright, and quality does not diminish when blown up to computer screen size. Not a proffesional gadget, but perfect for private use.
One problem with it is that the very large very bright screen makes it quite power hungry, but it still lasts maybe 8 hours music, or 3.5/4 hours watching videos. Also it only comes with a USB charger which is slower than Id like (3 hours for a full charge from flat).
Unfortunately, when I had had mine for less than a week, my sister knocked it out of my hand, it flew up then bounced on a wooden floor. I thought we'd got away with it as it still worked, but it couldnt read the hard drive after a few hours. This makes it sound very fragile, but no hard drive likes to get bashed around.
Despite this, It is such a fantastic product that I am scouring the internet for another one at a low price (I got my original one from Pixmania for £136 but they no longer stock it).
Note: For anyone who is scared about breaking it, Allianz will insure it from accidental damage for three years, for £35. I would advise this.
I hope this sways your decision away from an ipod, towards the archos 404 camcorder because that is a decision you won't regret.