In relation to Al Lockow’s and Stig Bjorge’s articles:
The Toshiba press prelease Stig mentions actually states that the suggested retail price for their 5 GB PC-Card HDD is as high as US$499.
The version for embedded systems would of course be cheaper, but it’s still remarkable that Apple has managed to include both the HDD and the actual iPod at only US$399.
[Apple’s iPod: Technical Specifications document does not state the form factor of the HDD, but dimensions indicate that it is something smaller than a traditional 2.5-inch HDD. -Ed]