Am absolutely pleased with this. I haven't bought an iPod dock before but wanted one with a good amount of functions for my iPhone 3G and my iPod Nano 5G.
It's a bit bigger than I expected, but sits, pride of place, on my bedside cabinet. It's stylish and easy to use, despite the 22 buttons. The screen is, as other people have mentioned, too bright, even on the lowest setting, but this doesn't affect my sleep (I guess I am not too sensitive to light unlike others.)
The dock is adjustable to fully support the back of the iPod/iPhone, using the dial at the rear of the speakers. This stops any possible damage from wobbling the iPod while it is cradled. It also charges your device while cradled, meaning you can put your mains charger away and cradle your iPod/iPhone when you want to charge it. It's also less clutter.
The screen, although cluttered, is quite easy to understand. The only thing that could cause confusion is the alarm indication.
The sound is amazing for a device like this, and the MEGAXpand feature allows you to seperate the two speakers to give the surround sound effect. It goes quite loud too, but I did not note distortion, so I guess there isn't any.
I have yet to try my iPod Nano 5th Generation on it as it is a christmas present I have yet to receive. However, I have been informed that it is fully compatible. The iPhone 3G was rumoured to not be compatible, which is not true. It works in the dock, but takes a few seconds after you press Play for the music to start. I guess this is due to the iPhone loading the required files.
The dual alarm works perfectly well, only problem I had was when I hadn't seated my iPhone properly. The alarm did flash on the screen as it was alerting me, but because I had chosen iPod Music as the Alarm Sound, I heard nothing due to the my incorrect docking. Luckily I was only half hour late and it wasn't for anything important.
The FM Radio is clear and easy to use, my only problem is tuning, it tunes in steps of .05, meaning you have to go through 100.10, 100.15, 100.20, etc. It's quite slow, but the 5 preset buttons can save your favourite stations. I haven't checked to see if there are two FM Tuners, so if there is, you may be able to store 10 presets. I know that there is one AM Tuner, but I haven't used it as I have no need for it.
The speaker dock comes with an AUX lead, for the Audio In function on the dock. It also comes with a AM Loop Antenna.
It's an entirely universal piece of kit and you know you are buying a quality item because it's sony. I am completely impressed with it, it replaced my DAB radio (I do miss DAB.) That's the only improvement I can think of, but that would have made the RRP even higher, seeing as DAB is still a fairly new concept.