The Zoom H2 can record in WAV format (at 96, 48, or 44.1 kHz in either 16 or 24 bit depth). Recording to compressed MP3 format at up to 320 kbit/s or VBR is supported in the 2-channel recording mode. Officially the H2 supports SD flash memory cards, but some SDHC cards of up to 32GB capacity have been confirmed by Zoom to work.
The H2 has a three-way gain input switch, with settings for low (useful for loud sounds, such as a live rock band), medium, and high (useful for speech, such as one or two people podcasting in a quiet room.)
More info about the Zoom H2 can be found here.