Check this thread over at dpreview for some interesting info about portable mp3 devices with off-the-shelf 4GB Hitachi (aka IBM) Microdrives.
The 4GB Microdrive currently sells for about $500 at B&H photo.
Better yet, the iPod mini apparently contains one of these drives too (per CNET). So if you wanted to rip one open you might have a chance at a 4GB Microdrive for $250 plus some cool Apple plastic.
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