I cant really say as all I have seen is the adverts and the WWDC video.

What I can say though is that I have read about a Dutch guy that has installed a 16GB compact flash card in his iPod mini. It crashed (after abuse I am sure because my original iPod still works & its a 1st generation), he took it apart & found the hard-drive (the only moving component) has a Compact Flash fitting so he tried 4 Gb, then 8 Gb & finally there was mention of 16 Gb but I don't recall them saying 16 Gb was atually fitted. If you look at this site where they strip an iPhone, I don't see anything that looks like a CF fitting or a hard-drive. I am sure the iPhone has solid state memory rather than a mini hard-drive. This will help battery life as well as there is no hard-drive to spin-up.

http://www.ifixit.com/Guide/iPhone

Maybe someone a bit more techy can recognise a memory whip or two in the pictures.

Here are some more pics http://thinksecret.com/archives/ipho...rt/index2.html and I do not see any CF-type fittings either. It looks loke it is solid state mem soldered to the PC boards so you might have to wait for a 2nd Gen iPhone for more memory. If iPod is anything to go by, that wont be too long.

G