Digital Photography Review has the lowdown on iRiver's new H3xx line. As previously reported their will 20GB and 40GB models and both have a 2" color LCD for view photos.
What's new this time around is pricing. Japanese retail pricing for the 20GB H320 is 47,800 yen ($430 USD) and 59,800 Yen ($540 USD) for the 40GB H340. That's even more expensive than the iPod, but street prices will certainly be lower. As to whether anyone is willing to spend an extra $150 or so on the H300s remains to be seen.
In my mind, the USB On the Go (OTG) feature may be worth the extra cost to some. USB OTG lets you connect a digital camera directly to the player to transfer photos off of the camera's smaller memory card. So if you're shooting a lot of high-res photos, you don't have to drag a laptop around to free up space on your camera. And of course the H300s can display those photos once they've been moved onto it.
More bits: Japanese product page and press release.