Video quality varies according to how the files are encoded, but it was generally good (S-video will look notably sharper than composite, of course). The CSI: Miami episodes pulled from Fanfare looked better than most iTunes Store offerings, but not up to the better video quality we've seen on Xbox Live Marketplace downloads and the on-demand Vudu box. In other words, despite its maximum supported DVD-level resolution of 720x480 (720x576 for PAL), critical viewers will notice some telltale compression artifacts: softness, jaggies, and color solarization. That said, it was still eminently watchable on a 50-inch plasma. And the sample DivX videos (skiing and base jumping footage) included looked noticeably better--a testament to the TakeTV's potential when better video encoding is used (albeit at the expense of much larger file sizes).
What didn't we like? File compatibility is decent--DivX is always a nice feature--but a wider range of formats would've been even better. Don't expect the TakeTV to play back your WMV, Quicktime, and other digital movies. Likewise, it would be great if the TakeTV could also double as a makeshift photo viewer or music player--but it didn't recognize any of our JPEG or MP3 files when docked. (That said, the TakeTV works fine as a standard flash drive--you can use it to transport any type of files between PCs.) Other little annoyances: The system doesn't offer an auto-resume. Return to the main menu in the middle of an episode, and it'll start again from the beginning. Also, most videos had a 3-second delay before playing.
Another problem was the remote itself. It doubles as storage cradle for the main TakeTV unit when it's not in use, so it's got an odd shape that's difficult to grip. Button layout is likewise odd--the gigantic play button is on a separate top section, while the 12 remaining keys (including a five-way directional pad) are down below. The bubble membrane buttons need to be pressed firmly, and you'll need to keep it pointed directly at the TakeTV dock when using. On the bright side, it's a standard infrared remote, so you can always use a good universal remote control instead.

The other limiting factor of the TakeTV has to do not with the hardware, but the Fanfare service. At launch, it's pretty thin--aside from the keystone CBS and Showtime partners, the only other premium (pay) choice is Jaman, which offers arty international fare. Current freebies include programming from the Smithsonian Network, as well as--gulp--the TV Guide Channel and the Weather Channel. Not exactly the 500-channel Valhalla of cable or satellite TV. Ideally, Fanfare will deliver more programming sooner rather than later. Also, there didn't seem to be any way to watch downloaded shows on your PC--somewhat annoying if you're traveling with your laptop, for instance. Of course, SanDisk is positioning Fanfare as its answer to Apple's iTunes Store--so compatibility with a wider variety of devices is a certainty at some point in the future. (Other Sansa portables are said to be first on deck.)

The master plan, according to SanDisk, is that some of the premium content--such as shows that were originally on commercial television--will be offered in two formats: paid downloads (with no ads) or free (but "ad supported"). Sounds like a fair deal, but beware: It's entirely possible that fast-forwarding could be disabled on the ad-supported downloads to keep you from skipping commercials. Annoying, to be sure, but if the stuff is really free, it's an effective trade-off.
Whether or not Fanfare blossoms, we suspect that the TakeTV may become the ultimate accessory for fans of BitTorrent and other similarly legally gray peer-to-peer sites. To date, all of the DivX and Xvid files available on such file trading networks can't be streamed to Apple TVs or Xbox 360s (at least, not without hacks or expert knowledge)--but dragging and dropping them to the TakeTV works like a charm. Of course, it doesn't have to be all pirated video and porn: It'll work just as well with home videos, as well (once you convert them to a compatible format).
In the final analysis, both the TakeTV and the Fanfare video service are works in progress. We fully expect SanDisk to tweak the unit's firmware and the Fanfare software to correct some of the annoyances and shortcomings listed above. In the meantime, though, the product largely delivers on its mission of offering a super simple solution for watching digital video on your TV. Given the modest price, it's a worthwhile recommendation for those looking to watch digital video on their TV--even for (or perhaps especially for) tech luddites.