Well, took mine back to my retailer - JB Hi-Fi - and demanded (and received) a refund as iRiver couldn't guaranteed this wouldn't happen again.
I just Creative Zen Touch out of a box it's been sitting in for three years (clicking/dead HDD) and gave it a bit of a bashing as suggested on the Nomadness Forums - and it's working again! Woot! Saved me $300 =)