What a blast this is! I love it. I primarily use it as an MP3 player. You can store about 12 songs on the 16 MB card. Works great, sounds great. Very easy to use. You can transfer songs using the provided Kodak software, or just copy/paste right out of Windows Explorer.
The camera is a nice bonus. Not great resolution but not too bad either. More of a toy than a serious camera. No flash is the biggest drawback. Holds a ton of pictures if the card is not full of MP3's.
The video feature is great too. Takes surprisingly long quicktime movies WITH SOUND! You get several minutes to record, not the 60 seconds you get with a typical digital camera. Very good mic picks up even low volume sounds. The video quality is okay, really meant for computer screens only.
Just buy it! You'll love it. For the price it is one hell of a deal.