There are several really good digital music players out there, including the Zune. However, I am really partial to the Apple products. There are so many accessories available for Apple products and to me that makes a huge difference. You just have so many more options for headphones, cases, portable speakers, in home speakers and everything else when you buy an Apple product.
As far as music quality goes, the Apple Lossless format is as good as anything out there, IMO. Unless you have some special needs or are an extremely serious audiphile, Apple Lossless should more than serve your needs.
I was a big fan of the Apple iTouch for several years, but I recently bought my wife a 16G iPod Nano and have been really impressed with it. It is a neat little device, easy to use and extremely small and light. My advice is to buy as much storage as you can afford. I can't remember what the largest storage capacity is for the Nano, but the iPod classic will hold 160G I believe.
I hope this helps a little bit.