I recently bought a Canon Wordtank V330 and I think it's great. It's aimed at high school/university students studying English, so it has a lot of study options (some of which can be reversed to study Japanese), as well the the ability to write kanji, see how they are written (stroke order) and look up how to read them as well. The menu can be switched to English, you can ask someone at the store to do it.
I don't know if you have a store near you where you can try before you buy, but there's a Yodobashi Camera near the hotel in Shinjuku where you can try different models and decide (and even get started on getting points for free merchandise!).
It costs about 30,000 yen, and I certainly don't regret getting it. My previous dictionary (a lower model Canon) was good for three years, but was starting to pack it in.
Info link:
http://smartimports.net/product.php?productid=16364 Hope this helps!