Thanks all,
I have learned quite a bit from this thread!
GOOD!
I like both products. The 1541 U2 is a great device and does what it is suppose to do with out much fault. Reasonable updates and feedback seem to the norm as well.
The Chameleon is incredible. Can be very complicated and is not 100% in the CPU emulation yet but VERY useable. Depending on what you do with your C64, you might not have any problems with it. Being able to run PAL in standalone here in NTSC land is very cool. Future updates should make it even a better device. C128 support is nice too.
Biggest issue for the 1541 U2 is the time it takes to get one. It can be 6+ months.
Biggest issue for the Chameleon is the complexity and the semi-beta status of the device. It can be so many different hardware configurations that you can make settings that don't work. The documentation is orientated toward a very knowledgeable C64 owner and or programer. BTW, if you are a C64 programer, they almost all the features of the Chameleon accessible is a very well documented and powerful fashion.
I have heard that the stock of the Chameleon is running low. I believe a new run will be made but it might take a while.