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I'm actually not worried by the lack of a memory card slot. In my experience mobi doesn't always play well with the slower access, so more onboard storage sounds like a worthwhile trade-off. I already know 2GB is more than enough for me, because I've that size card in my PDA and haven't come close to filling it. As long as K2 mounts as a standard USB mass storage device I'm all for it.
I still think the Sony is a more likely purchase for ME, but the K2 looks like a great step up from K1.
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