OK so here is what I did. I went by the electronics store to see what they had available. They had both the Creative Labs ZEN Stone Plus 2GB (thanks for the recommendation) and the Klegg player. They were both on sale so I decided to get both, and whichever one I don't like I will bring it back or just pass it on to my niece. I have listed out some of the advantages of each down below for anyone who cares.
ZEN Stone - easier to control than the Klegg model, holds 2GB (instead of the 1GB for the Klegg), has built in stopwatch, countdown, and clock which is great for running, and good battery life
Klegg - $20 cheaper, has color LCD capable of showing pictures in a slide show, will display the lyrics to songs if you load the right file, has an ebook file (havent tried this out and I am not sure how reasonable this is considering the size), and good battery life
They both have FM radio and voice recording. They also both sound great with the play back of my songs.
My conclusion thus far (though I will try them both out a bit more) is that the ZEN is better for working out and running while the Klegg will be better for my niece who is more likely to enjoy the photo and lyric capabilities than I ever will.
Thanks to everyone for the advice.