I have a SanDisk 8GB microSDHC card installed in my T1. I recommend Staples. They always have great sales on memory compared to OfficeMax. I bought it on sale for $15, normally $30. According to their website, it's on sale for that price this week.
Books on the SD card work just like main memory. FYI - You cannot mix and match books on the internal main memory and the SD into collections. You have to put books on the SD card into collections on the SD card and books on the main memory into collections on the main memory. Also, there is a weird bug in the firmware that doesn't show bookmarks in the notes list for books on SD.
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