It should be a great player. I got a similar player to this one from a different vendor a few months ago. They are really tiny and mine works really well. Mine will play video at 16 fps for the 160 by 120 screen size. So I use AMV converter v4.00. It's a bit buggy and tends to crash if I try and convert more than two files in succession. I haven't found any other versions that will convert at the larger size at 16 fps.
Yours will probably have a bit better screen and more current firmware. Mine has a built in FM radio like yours does (some mp3 players come with a separate radio that's part of the headphones - generally don't work well).
The only problem that I found was that the speaker wasn't very loud which is why I got the 2 speaker player from electronic_super_deals. In the meantime, I've learned to use Super video converter and VDub to increase the audio volume (as well as improving the picture quality) so that the resulting converted video is louder. The speaker is certainly loud enough if using the player in a quiet setting.
The class screen cover is fragile as it is quite large and the glass is thin. Mine broke shortly after getting it so I removed it and covered the area with a hard acrylic LCD protector from 'da Products. I'd recommend doing something similar before the cover breaks as the sharp glass fragments can damage the screen. I was lucky and only had a small nick in mine.
http://www.daproducts.com/lcdp.htm
Good luck!