I bought one of these a few weeks back during their "one-day" $99 sale and preloaded it with photos for a Mother's Day gift.
320x240 is fine for a 5" screen; photos taken with my digital camera were sharp and clear. The included software is easy to use and intuitive. It will accept images in many formats, and allows you to zoom in/out and select the area of the photo (if not the entire thing) to display on the frame.
The only problem is that there were horizontal interference lines on the display which were more visible with bright images. From a couple feet away, they were not noticable.
Sure, an I-Opener or Webplayer would give you a bigger display and higher resolution, but this works better for its intended purpose. Instant on/off, small enough for a desk display, and easy enough to use so I won't need to provide technical support when Mom wants to change the images...