I hope we don't appear argumenatative. We are just trying to get a better understanding of your opinion for future reference. These things can be quite subjective.
Did you see my video clips on the forums here for the PVR which is the same as the DV 8800? I am assuming that when you mean 'it records terribly' you are not meaning the actual clarity of the video, but that it cannot handle fast panning shots etc. right? You said earlier "not really poor video, BUT more poor video recording." which implies what I said although please correct me. You also said "Like I said if your not very close and holding the camera still, your not getting a good video." which doesn't sound right. Are you sure you don't have the silver lens switch in the macro postion? (ie in the up position) since this would give a similar symptom as you describe. This is meant to record objects much closer to the camera and would make those further away blurry.
As to the mp3 problem, this sounds like you are using internal memory as 4 songs would be about right for the 16MB. This is assuming that you transferred them via the cable and did not stick them on the card of course which I would assume as you do not have a card reader. When you turn the device on with an SD card in the slot, there should be a card icon to the left of the battery icon on the display. If not, then it is using internal memory which would explain the problem you are having. I myself do not use the mp3 capability as I already have better devices, and yes one of them is an ipod although only a 1GB nano :-)
Pretty much all these devices are going to suffer similarly with regards to video recording. The best of these devices currently are the Sanyos but they of course cost a lot more.
Sorry that things didn't work out for you, but at least you tried one out and I find that you really have to find out for yourself in the end.