Microsoft tried to "one-up" Apple by producing clever video-capable portable devices.
They created two fatal problems with the device:
1) There was no easy way to copy your DVDs onto it (this would be like having an iPod and not being able to copy your CDs to it)
2) 99% of the useful video content on the pirate underground is in formats which this device didn't support natively. And trying to get it to convert to WMV was beyond a joke.
I got mine as a freebie from MS which was incredibly generous of them, but I just gave it to my brother as he wanted something to play all his music on. There is no way I could even remotely explain to him how to get any videos on there, so he's just using it as a very flashy "iPod".
Creative's new portable video player is right on the money - it supports all the formats you need for all those dodgy movies and TV shows you've got on your HD.