I bought the e260 a few months ago.
The sell points for me was expandable memory, a replaceable battery, being able to plug and play (and drag and drop) with windows xp rather than being tied into using itunes with Ipod. Its also a fair bit cheaper than the ipod and for some reason I just wanted to try something other than the ipod. Also, other reviews I read said the sound quality was good.
If you buy one, be sure to upgrade your software! (download a program at sandisk.com that does this for you) until I upgraded I found my pc ran very slow and didnt always 'see' the sansa when I plugged it in, there are also some major improvements in the new software.
Some of the other reviews complain the sound volume is too low. This is true but with upgraded software, there is a high volume setting, which makes it quite loud and the volume can be controlled much better. The Sennheiser cx300 earphones, which improve the bass significantly (but with a small loss in treble, which can be improved by upping the treble in the EQ) are noticeably louder than the standard earphones at the same volume level. With these two improvements I doubt anyone would still have the same complaint nor complain about the sound quality when listening to rock,pop,rap or electronic music.
I was able to compare the sound quality with an Ipod shuffle. Initially the sound quality of the shuffle was much better, much more treble and bass response and the ipod earphones sounded better and fit better (the fit also improves the sound). I wasn't too happy about this, but selecting "pop" in the equaliser and using the high sound setting, the sound quality is quite similar, if I used the ipod earphones on the sansa. With the Sennheiser earphones, the sound is transformed quite a lot on both.
There is no FM tuner (US only!)
I find the selector wheel and buttons, like other reviews a bit cheap feeling, buttons are a bit small and not easily pressed, but it doesn't take long to get used to it, and you can operate the pause and skip buttons through your clothes with practice, which is a useful.
The head phones are quite shoddy, you will certainly want to buy new ones, since they arent comfortable, dont fit so well, fall out easy and don't sound that great.
Once you have the upgraded software, dragging and dropping music is easy and less hassle than messing around with itunes.
Its worth getting more space than you think you need, I have about 390 songs and thats used 2GB. Any video clips chew up space very quickly about 250Mb for 25min.
Video quality is good, but it chews the battery and memory space, it takes a long time to convert a video onto the player (about 1 min for every 2 min of video). The screen is very small for watching a movie, its ok for cartoons though. Video was less of a benefit than I though it may be, but its nice to keep a little clip on in case you ever want to watch it.
A very annoying feature is the random play, something which is quite important when you build a large amount of music- It doesnt work properly. It often plays the same song twice, and even the same one in a row!!! It also misses many out before it replays the same ones. Software updates havent corrected this.
Overall the sansa is a good buy, if you don't mind having to fiddle around a little to get the best performance and put up with a few 'stuff ups'. The ipod is a bit more `ready to go' and refined but it doesn't have the selling points at the top of this review, which may not be worthwhile for some.