Via my friend Hugh Grant (not the Hugh Grant, though), Toshiba has created the world’s smallest hard drive, with a diameter of 0.85 of an inch:
The drive, which is small enough to be used in mobile phones, can store up to two hours of high-definition moving images and just under 60 hours of music. Its tiny size will likely lead to the development of extremely small video cameras. The 1-inch HDD developed by the US affiliate of Hitachi Ltd is used in digital single-lens reflex cameras and other products, but it is too big for mobile phones. Despite the smaller size, Toshiba’s HDD has a storage capacity of 2-3GB, equal to 2,000 floppy disks.
0.85 of an inch. That’s like the size of my thumb. In two years I’ll have a 40 GB iPod that I can carry around in my navel.