If anyone is still interested in this thread, I joined the Zoom H2 forum when I was shopping for a portable recorder to record live rock bands at local venues. The guys on the Zoom H2 forum told me flat out that the Tascam DR-07 was a better recorder for what I wanted.
The Zoom H2 is noted for clipping problems with high SPL levels. It has a digital limiter, but that does you no good if the analogue mics are clipping out to begin with. You end up with a distorted recording.
The Tascam DR-07 has an analogue recording level control to reduce the SPL that gets to your mics, so you can actually record loud sources without clipping. Using the analogue control, plus the digital limiter, I have been able to get great live recordings without the distortion from clipping the mics.
The H2 has many great features, but it cannot handle the SPL that the Tascam DR-07 can handle.