It works really well, though if I had to make any minor points: -
1. The battery lasts one day if being used a lot, but a car kit should mean it is always charged enough. It comes with loads of accessories - battery, desk charger, leather case, headphones etc. It lasts for 4-5 days without phone use.
2. You need to update the bluetooth management via a 3rd party add on, which works great (though the new software update may have sorted it out.)
3. I believe the phone still works with a bluetooth headset even when it is connected to the Bluetooth GPS receiver. The phone definitely still works with the supplied headphones during sat nav.
4. You need a screen protector as when you hold it to your ear it can get covered in sweat, gunk, ****e from your face, depending on how swarthy you are.
This all applies to the XDA II not the IIs and I would hope they have addressed these issues.
To be honest, I looked at upgrading and they are so similar there is no point. Unless someone can prove otherwise, I would consider getting an XDA II as you may save a few quid. There is also and XDA III due out soon, which is a more serious leap in spec. I may upgrade then.
By the way, thw new ROM and software upgrade from the O2 website makes a massive difference to call quality and various other features. It also adds full licensed Blackberry functionality among other features.
In short I couldnt recommend it more - and it is also an excellent MP3 player, Camcorder, Camera, Portable video player, satnav, speed camera detector, diary, email client, web browser, traffic avoider, dictaphone, ebook reader, backup device, word processor, games machine, doorstop - what more can I say.
Go and buy one, I guarantee you will not regret it one bit. Oh and by the way it does even more than that!