I've had one of these since July and can say that on the whole I think it's pretty good. I wanted someting to make coffee in quantity for Dinner Parties etc - and the ability to do one or two Espresso's as well.
Firstly the Espresso part... The machine comes with 3 inserts that you put in the brewhead to determine whether you are using pre-packed pods or one or two servings of ground coffee. To be honest I only use the 2 serving insert. I had problems with water remaining in the brewhead after use - which is messy - but is solved by tamping down the coffee after the first scoop is added to the head, then again after the second. As with all these domestic machines, the clearance between the brewhead and the base restricts the size of cup you can use - which is frustrating - I prefer a tall mug - but have to use a large round but shallow cup. The steamer works ok and produces frothy milk - but it's nowhere near as thickly frothed as the milk my Brother's Gaggia makes. There is also a frustrating wait while the machine switches between steam mode and espresso mode - accompanied by lots of pumping noises and water drips!
This all sounds a bit negative, but I promise you, you get used to it - and it's not a problem once you've figured out the best sequence to do things in.
Also - the water resevoir is very easy to get to - the tank lifts out through the top panel. You have to fiddle around with pipes and stuff and take off the cup rest to fill the Gaggia.
The filter coffee side of the machine is excellent - making very nice coffee, in large or small amounts. You pour water into the rear resevoir through a door in the top of the machine (seperate from the espresso tank) - the guage on the side of the machine is supposed to tell you how many cups worth of water you've added to the tank - but more often than not, you get an air bubble in it which means you cant tell how much is in the machine - and therefore how much coffee to add to the filter. I just use the graduations on the jug to fill the tank and ignore the guage.
The paper filter is placed in a removeable basket and coffee added. If you like you can delay the start of brewing by using the timer function - which is great if you're having guests - you just set it and coffee is ready when the meal is over - or first thing in the morning etc.
The only prob with the filter side is that the jug does not pour very well - tip it too much and coffee goes all over the table and not in the cup!
Krups Customer Support are very good - they sent me out a replacement insert at no charge overnight - very knowledgeable.
On balance - if you only want espresso - buy a Gaggia and be done with it - if you want flexibility and a pretty good compromise then this is worth getting.