I just bought a Rio Carbon.
5gb of storage. 20 hr battery life.
It also doubles as a portable hard drive which is really handy at times.
It's easy to use and has quite a few handy features, but its not bogged down with gizmos.
It was $200 canadian at costco. About $150 usd.
If you're looking for earbuds that block outside noise, check out the sure E2C "canal phones".
They are said to have great sound and block out even more outside noise than the sonys. I think they're about 100 bucks.
I've got the sonys now but will be buying the sures soon.