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Is the capacity MB/GB the most important?
Yes and no - get yourself at least 1GB anything below that'll fill too quickly. Other than that it's about price. The sound quality is very similar for most I have listened too in the 1 - 60 GB range.
An I pod is always a good bet - classic design, lot's of space & accesoroes but pricy.
The Iriver Range is excellent - something for everyone there.
Battery life is an issue on some models and was a concern to me - so I got an Ipod mini - which is perfect for my needs. Also Mobile Phone with in built mp3 players are coming along, but none really have the capacity to challenge... yet.
The only benefit and consideration the iPod has (maybe some others do this too) is one of the wireless transmitter sold by one company that can be adjusted to ANY FM frequency, not just 5 or 6, which is cool in the car. My car has a cassette tape deck in it so the cassette interface works best for me, better sound than those little transmitters, but my wife's car is CD only so the transmitter was the only way to listen over the speakers in her car.
Number one thing I'd look for is standard batteries, AA ideally, rechargeable nickel hydrides last forever, are cheap, and can be used on any other little things you have.