Except for a better, more user friendly interface in the iPod Nano, I would recommend the Creative MuVo TX FM.
Check the review here.
Summary of the review:
The good: Cool design; USB 2.0; comes with armband and belt clip; great sound; easy to use.
The bad: Tiny screen; no USB extension cable.
The bottom line: Creative's MuVo TX FM is a great option for people who want a small, lightweight, and gymworthy player with a decent feature set.
For the iPod Nano:
The good: The second-generation Apple iPod Nano takes on a new scratch-resistant aluminum body, which is available in a variety of bright and shiny colors; it's still superslender but more durable, thanks to a seamless construction. It supports photos (with thumbnail grid) and album art and has great sound quality.
The bad: The iPod Nano still doesn't play video, not that you'd want to watch it on the small screen, and there's no built-in FM tuner or recording capability; not all color options are available for all memory sizes.
The bottom line: The second-generation Apple iPod Nano is like the successful offspring of an iPod Mini and a first-generation iPod Nano. It's small, stylish, user-friendly, and competitively priced--a great player all around and suitable for a variety of users.
Full review.