iPod video. Not sure about the iPod Touch as I've never used it but the video has been fine for me. That may be better though.
The Zune... has a slightly bigger screen (albeit same resolution) than the ipod video if that's important to you. Not much else to say about it really... it does what it does, plays audio and video. Not officially released outside the US but they're going for a decent price (£125+) on eBay.
Got one whilst over there $175 so about £90 (on amazon.co.uk at £165) I was after a Creative Zen but the store didn't have one in stock and I wasn't going elsewhere where I'd be able to get one. Can't fault it so far.
The only downside of course is if you like to buy tunes online. The Zune Marketplace (the equivalent of the iTunes store) isn't available outside the US. Doesn't affect me cos I only rip my CDs and don't buy online. I like the crazy wireless syncing feature. For those in the dark, the Zune has wifi so you can upload your tunes from your PC wirelessly. However, the Zune needs to be plugged in (power) to be able to do this. By default, the Zune doesn't come with an AC adaptor, you simply charge it via the PC USB link. So yes... to wirelessly sync, you need to connect it to your PC via the USB lead! Genius, Microsoft.