Via themicrocapspeculator.blogspot.com:
...The company says it will be able to fulfill its projection of positive cash flows in Q4 if it is able to sustain a price point near $149 for the upcoming 260 model , if it continues to enjoy similar marketing deals with WalMart, and if it can grow its revenue-per-user on the online businesses by 400-500% from .5 cents per user per month to 2.5-3 cents. For the sake of investors I hope its right, but those are some pretty big "ifs."
On the hardware side, the 260 is a marked improvement over current models. With a 2.5" screen it looks a bit like a video iPod knockoff and weighs in at about an ounce lighter than Apple's hard drive models (though much heavier than the equivalent flash-based nanos).