I had an old iRiver IFP-180, and FM recordings uploaded just fine. It's not in mp3 format, but the iRiver Manager can convert it to mp3 files once you upload it to the computer.
I thought the Iriver 795 was a good as I could get in features and performance. As my jogging partner, I want a flash unit with good and powerful sound. Direct FM recording capabilities seems like it may (??) be an added bonus, but I read in a review that because of security concerns, you cannot upload these files. Are there other players on par with the iriver players where you can upload such files?

Chowhound
Comic Vine
GameFAQs
GameSpot
Giant Bomb
TechRepublic