Apricorn 1.8" USB drive with retractable cable, (Score 2, Informative)

Small it is...uses the the same 1.8" drive used in the ipod, available in 20GB($165) and 40GB($253) capacities.

Product specs @: http://apricorn.com/product_details.php?ID=412

Lowest price I've found @: http://www.buy.com/retail/product.asp?sku=10374007 &SearchEngine=PriceWatch&SearchTerm=10374007&Type= PE&Category=Comp&dcaid=1688