ModuleRecords has a nice overview/review of portable flash audio recorders for professional use. While you can use your iPod or other flash MP3 player for recording interviews, you might want something with better audio fidelity if you're doing video work or recording concerts. I've been looking for a good device that I can use with external mikes and later sync up to my video tracks. The best devices let you use balanced mikes (less noise on extended cable runs) and mikes with phantom power (higher sensitivity mikes).
The M-Audio Microtrack seemed to be the ticket, but the review has me thinking about the Zoom PS-04 or Edirol R-1. I think I need to do more research.