It's being seen as an IPOD rival in terms of audio playing and it looks to have all the things that an IPOD has including special buttons to control track playing. It comes with a 4GB memory which will hold 3000 songs, but doesn't have a memory expansion slot for SD Cards, MMC Cards etc. Having said that 4GB would probably be enough.
As you can see by the picture the user interface is IPOD-esque with big, easy to use buttons to control music playing.
Also, the phone comes with Visual Radio which plays FM radio stations and shows relevant information and pics:
Other stuff includes USB, Bluetooth, 3G, 2 Megapixel camera (up to 1600x1200), MP3, AAC, AAC+, eAAC+, Real, WAV, WMA, M4A, AMR-WB, True Tones, AMR-NB audio playback, 3GPP H.263, MPEG4, RealVideo video playback.
For Java software developers there's Java™ MIDP 2.0, CLDC 1.1 (Connected Limited Device Configuration (J2ME)), JTWI 1.0.
The Wi-Fi support is also worth a mention because it should give better, cheaper, faster internet connection than 3G if you're in a Wi-Fi area.