Well I just received mine via the HK trail and I can confirm it will take 4 gb, was the first thing I did load it up.

Sound is good with a descent set of earphones.
Manual is a joke thou and the mini cd with drivers is also a waste of space, I would suspect most problems are due to lack of knowledge being unable to format and navigate the menus, but I am very happy with mine.

I would be very careful discrediting this particular seller they are shipping lots of units
And are making a lot of money upset them at your peril