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I use a 512Mb Compact Flash card and i can get 6 good quality (500kbs) bitrate, 30min Simpson's episodes on the card no problem. This is also fine for toting around 1 or 2 full length movies.
As far as CF or Microdrive, I'd just look at the max you want to spend and then see which of the current deals on Microdrive or CF give you the best cost per Mb. I know there are some great prices now on 1 and 2 Gb Compact Flash cards out there.
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