I have one, and for a low priced analog conventional radio, it cannot be beat. With morons selling decade old beat up crap on Ebay for absurd prices, you can get a TK-2312 for the same money which is a current production product with a full 2 year warranty (when purchased for an Authorized Kenwood dealer).
128 channels, zones can be as few or as many channels as you like (up to 128 channels max), continuous rotary. Does both MDC1200 and fleetsync, encodes and decodes 2-tone, scan with priority- the radio does DTMF ANI and DTMF dialing. Nice 8 character display with RSSI indicator.
Performance wise, these ROCK. Side by side they beat the pants of my best Jedi radios for RX sensitivity. Battery life with the included Li-ION battery is amazing. Days of receiving or will last a full 8-10 hours of HEAVY transmit duty. Transmit audio is clear, not distorted, and has great frequency response. RX audio is LOUD, CRISP and clear. Radio is built very well, but not bulky, it is the PERFECT sized of a portable, not too small, not too big, and easy to carry.
Two two pin classic Kenwood accessory connector means audio accessories are cheap and abundant, as are programming cables. The programming software is reasonably priced. The latest version of KPG-134DN forces narrowband EXCEPT on 143-149, so it's HAM friendly, and you can still set a channel to wideband IF you set the transmit frequency to RX only, like NOAA weather- thanks Kenwood for making that possible.
Plenty of option buttons you can configure to your liking, a total of 7 keys on the front, and two side buttons. Very flexible to tailor the radio to your needs. Did I mention that, in usual Kenwood form, the KPG-134DN is the easiest, painless programming software? Runs fine on both XP and my Windows 7 32 bit machines.
I would say this has got to be the best of the best of low priced, modern analog portables. They do all channel steps and are of course, fully narrowband compliant, unlike other low priced radios of a similar tier like the Motorola CP185.
You can find these for less than $260 new if you smart shop. A great Kenwood radio. It's a winner.