I bought one for my grandmother last year. I looked at a few from Best Buy, Circuit City, etc on BF and just did not like the resolution. I even was able to load some of my own pictures (using memory card) to see some real life examples.
I did end up getting one though from Bed, Bath and Beyond. Way towards the back of the store there was a door that said, "Beyond..."... just kidding.
Seriously though did purchase a 7" one, brand name I had never heard of but the price was very low ($90 or so, which was a very good price for last year).
Brought it home and loaded it with several hundred family pictures (I had planned to buy one so I had asked extended family to email pictures so I could load them) and set it to slide show. Now my 87 year old grandmother has something she can look at while she is sitting in her rocker knitting. Plus it also played / plays music so I loaded an Elvis (she loves!) Greatest Hits album, which she just thought was the neatest thing.