I have been looking for an inexpensive digital-recorder that meets the following requirements for use with my students:
Expandable storage (media card)
Records in wav and mp3 format
Easy to Use
There were several on the list, but the Zoom H2 really can't be beat.
For $199 (less with my educator's discount at my local music merchant) the H2 has all of the above and 4 built in mics allowing you to record in a number of unique situations using a front 90 degree pattern, rear 120 degree pattern or both:
And a built in bonus is the ability to use the H2 as a USB mic and an audio interface with your favorite digital audio software (in my case, Garageband).
It's sounds great and is really easy to use out of the box.
In depth review here: O'Reilly Review Zoom H2