After recently getting this I have no problem with the storage (sd card would have been nice though)
I currently have 8 films on mine and a few GB worth of music, so I would have plenty if away on holiday
my films are ripped using iphone format so average about 500MB each, perfectly acceptable to me on a screen this size
I have had to selectively put items on my iPhone/iPod so I see this as no difference (they do have bigger sizes but idea is the same)
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