It is HD based - I would have preferred a flah based but I didn't really want the Nano, and the cheaper option was very important to me.
In terms of sound quality-
The Zen Micro is said to have an absolutely awful bass, and Creative tried to address this in the MicroPhoto by adding a bass boost. Still, it ain't no H300.
The sound quality is by no means bad, and my 128kps MP3s sound pretty good to me. The bass is still slightly lacking with the Boost, but there are no other major problems, it's just not quite as
pretty a sound as the H300.
And of course, no OGG support so I had to do a lot of reripping.
Oh dear I'm making my poor player sound very bad... hehe

. It's not, I promise!