Haj, I ended up getting what I think was a great deal on a used 16GB ($280 shipped w/ a case). I made the decision beforehand that I would have to deal with periodically changing out music do to the size but that's as much a function of leaving adequate space for vids as anything. But really, the more I thought about that, it wasn't a big deal at all. My portable rig is never going to be my primary source so who care if I can't fit my whole library on there. If I can't find something good to listen to among the 2000 or so songs on there I've got bigger problems (metal issues). And I'll be hooking it up to the host computer often enough to change out the video content, update podcasts, etc. that I ended up not caring one bit. And like oj I'm convinced that before the year is over Apple will have upped the capacity/dropped the price enough that I can think about moving up with a lot less penalty. Heck, half of me is hoping they up the capacity so the sheep will dump used 32GB versions for less.