It's no rumor, and its hardware-based, as you can see here: www.neoflash.com It's about 95% done as of September 28, and it's due for release around Christmas time this year with an approximate price tag ranging from $50 to $100. It supports CompactFlash, Microdrives, and MS hot plug-and-play (meaning you don't have to turn off the system to plug it in and use it). I'm assuming the "MS" stands for Memory Stick, but just to be sure I didn't put it down. I personally can't wait for the NEO-MS Converter because it will be much, much cheaper than the Datel HDD and will support much larger formats (the prototype was 100% successful testing a 2GB CF card and a 6GB Microdrive, recognizing the full capacity of both). Definitely a competitor to the HDD in my eyes.
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