Hello guys! Sorry for the abscence, I've been busy at work lately! Now to answer some questions:
I live in Japan, and I bought it from a local store (KS Denki)
Yup, it comes in japanese, but you can easily set it to English in the settings menu. That was one of the main reasons I bought it since I can't read Japanese.
Here's a pic:
As I said before, the sound quality from the phone out is much better than either the iPod touch 4g I owned before or the Sony walkman A855 I currently own. The A855 comes close, but the Z1070 is warmer and more detailed, with better sound stage and the touch isn't even a contender!

Can you confirm that the language can be set to english & the japanese model isn't volume capped?
I currently own an x series & love it's SQ. If the Z series SQ is on a par i'll get one asap.
My son has an ipod touch and,although it's great for browsing, i just don't like the SQ compared to the rich warm sound of the x series.
Yup, the japanese model has both English and Japanese, and the volume isn't capped in any way. I can listen to my audio technica full sized headphones through the phone out with no volume problems watsoever. Ive never owned an X series, so I can't really tell the difference, but I don't think you will be disappointed!
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