Its official, the iPhone and the iPod Touch have gotten a hard drive upgrade, and their both available right now at the apple store online, and will be rolling out to apple stores nation wide within the next couple of days. The iPhone now has 16GB of space and the iPhone touch has 32GB, which is a great improvement over the last two. Only thing that hurts a bit is the price which both are $499. So I would say to wait a few months to see if prices go down on either of these before going out and buying.