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iPhone App: Alchemize
30 Rock season 1 - 5.23 GB.
Lost season 3 - 11.51 GB.
Both were purchased through iTunes. Thought you'd like to know!
What they should do is get a flash HD (30-60GB) and combine that with the Apple Touch. There you have the best of both worlds. Yes, it would be more expensive but I honestly think people would buy it. 16GBs is nothing.