There's not much face to save after being forced by the courts to hand over $100 Million, so it's no surprise that Apple has come out and admitted that Creative did indeed create (in one fashion or another) the music player interface they were sued over. While it may not have been the actual code itself that was to blame, the way the interface was handled got called into question. Jobs had this to say about the outcome:

“Creative is very fortunate to have been granted this early patent,” said Steve Jobs, Apple’s chief executive. “This settlement resolves all of our differences with Creative, including the five lawsuits currently pending between the companies, and removes the uncertainty and distraction of prolonged litigation”.
What's even more surprising is how amicable the companies seem to be with each other now, with even Creative joining the Made for iPod program.