Despite its quirks, limitations, and outright flaws, the Archos 2 Vision (or Vision 2, call it what you like) is still the best $50 +shipping I've ever spent on a tech item. I've owned mine for over 5 weeks, it has about 8 hours of battery life per charge, under display-heavy use (pics, videos, flac and mp3 audio). Images look surprisingly good for the 220x176 resolution, the colours are rich and accurate, response time is on par with budget LCD monitors, but some videos suffer due to the video compression. The real cons are that the slider control takes quite a lot of getting used to, it's picky about some .jpeg's, and the conversion software is slow, buggy, and limited.
"B.T.W. seems on archos website that vision 2 doesn't actually play videos"
Wow, they'd really be selling themselves short, wouldn't they? Someone also generated some confusion awhile back with claims that it had an FM transmitter to allow playing mp3s wirelessly on a car stereo, which it can't. It just has an FM receiver.
It does play video. I've watched an entire television series on the Vision 2, it's quite nice.
The next best thing I've seen is a refurb iPod for $80, and a video Walkman for $100 that only plays .wmv.
I don't regret getting my Archos one bit. It's small, the battery life is good. I've even dropped it from desk-height with no damage, so it's (a bit) rugged.