Seems like Toshiba finally done it. They began shipping 40GB 1,8 inch HDD and later this year will sell a 80GB version. Of course they're using the Perpendicular Magnetic Recording (PMR), their own patent.
The 40GB HDD is allready in use by the new Toshiba Gigabeat F41 MP3 player which can store up to 10.000 songs in it's new belly.
http://www.toshiba.co.jp/about/press/2005_05/pr_j1601.htm
