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hk29,
Where this much storage really comes into play (assuming your digicam supports CF Type II) is for taking/storing pictures and movie clips using a digicam. Using a 128 MB SanDisk CF in my Canon G1 (3 MP images using JPEG compression), I can store 252 high resolution images. If I take several 30 second movie clips, then the number of shots that the SanDisk can store will vary. With the same settings, using the IBM/Iomega 1 GB Microdrive, I'll be able to store almost 2,000 high resolution compressed images (or I can store over 300 3 MP raw images).