I think you really have to consider the built-in storage as rerserved for your OS and any extra application you might want to install. For data storage I suppose you can use the SD slot or you can use an USB thumb drive. With 4 Gb cards and sticks widely availlable and 8Gb ones in the works I don't expect storage to be an issue. 4 GBs just for the OS and apps should be OK if you consider that winXP and most linux distros come on one CD.

What i would like to know however is if you can add extra apps to the built-in linux distribution and how big are the repositories? If I can install a few favorite applications such as Qcomicbook it can be a great little machine.