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I've been using a 6GB Hitachi microdrive for over a year now (which I paid almost three times as much for), and it's been great. When it's in the Axim, you'd be hard pressed to notice much of a speed difference between a flash card and a microdrive in most applications. The only thing I really notice is that it takes longer to delete files or to check the amount of free space on my card.
It does increase battery drain, but only by about 10%, which I can live with given the fact that I've got more storage in my PDA than I had on my first four computers combined.
The biggest problem with the microdrive is that it's a hard drive -- which means it can die if you don't treat it right. If you pop a flash card out of a card reader without stopping the USB device first, you'll probably be fine. Do it with a microdrive, and you can leave the drive in an unreadable state.
So yeah, if you can afford a large CF card, go for it. But you still get more storage bang for your buck with microdrives these days.
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