The Sony NWZ series are excellent for sound quality, though there are newer ones from the aforementioned company. I haven't looked for reviews for them in a while.
Edit - crap sorry I didn't see you wanted FLAC playing abilities. Ignore.
I currently have an IRiver Clix 2 with a pair of SE530's and love it. The new IRiver SPINN will be out pretty soon with support for FLAC and other formats, with touch screen and a nice clean minimalist look to it.
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