Hello Stacey: Yes, lowering the record quality DOES lower the disk space it takes up, but it really lowers the clarity of the recording. I find that I can record voice memos to myself while sitting in front of the machine at a lower quality, and they are very understandable. However, if I'm recording a lecture, it has to be at the higher quality as sounds further away become much less distinct and kind of mushy at lower recording qualities. Remember, the lower the recording quality, the less highs, in general, you pick up.
Now on the hard drive side, I've got much happier news for you. I have a little Archos Arcdisk 20 gb USB hard disk that is wonderful. It's completely USB powered, and measures 3 inches by 3 inches square and is a little more than a quarter of an inch thick. That fits in a pocket, hip bag or purse very easily. I think Jonathan just bought one that holds something like 60 gb, but I don't know how large it is. It works great with the MPower, but will draw down the battery a tiny bit faster. I'm getting ready for a road trip, so I put about 4,500 songs on it and the audio from about 50 DVS movies and still have some room. Jeff
