i believe the mini ipod and the new creative thingy are both using 1" mini hard drives.
If you think thats small take a look at this,
http://popularmechanics.com/science/...mallest_motor/ its a working motor that is only a few hundred nanometers big. thats getting on for the size of gates on cpus !
I wouldnt mind one of those hard drives though :-)
K