Check out the new 4GB microdrives they're coming out with:
http://story.news.yahoo.com/news?tmp...57wub.html&e=5
The world's smallest hard disk drive weighs just 16 grams and is designed to store large quantities of high-resolution digital photos and video, MP3 music, electronic games and other large files. It can store a full-length DVD movie or about 75 hours of high-quality digital music. The matchbook-sized drive features breakthroughs in capacity and performance.