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I got one three years ago (they don't sell it anymore, I think), it's an archos Ondio.
Not the best, and also has some noise, but the quality is good enough for some recordings.
The best thing is when some nice fellows created a better non-official firmware which improves everything, it even alows you to play games and see movies (very poor quality, but the idea is very nice!).
I recently picked up a package deal from BSW which included a Marantz PMD6660, a Seinnheiser mic, Sony headphones and bag. The recording quality on this gear blew me away.
I had purchased a mic for my iPod which does so-so recording. The setup above is pricey, but the results are great. At least for me it has proven to be a great investment.
J.
EDIT: I forgot to mention this device records to CF Memory and comes with a 64MB card. It has a USB connector and you hook it up right to your Mac.
Converted 4/29/05
G5 20" iMac 2.0Ghz, 1 Gig Ram
G5 Dual 2.5Ghz Power Mac, X800 XT, 2.5 Gig Ram, 23" ACD
G4 Mac Mini 1.5GHz, 512MB Ram, 64MB VRam, Int. Modem
MacBook Pro 2.00GHz, X1600-256MB, 2.0 Gig Ram, 100GB 7200RPM HD, USB Modem