Samsung will start producing 16 gigabit Nand Flash chips this year, nudging the memory technology towards use in notebook PCs and maybe even edging out hard drives in some products in the next few years. Nand Flash is currently in products such as USB drives and digital cameras in capacities of up to 8GB. But increases in capacity will see it rival hard disks and DVDs as a medium for mass storage.
16 Gigabit ( /8 = 2 Gigabyte) a chip thats pretty immense any who just bought a nano should watch out for the next mac conference
"and one more thing...
old nanos are now as useful as 8 track playas beatch"
using these new chips it would be possible to make a 16 GB Nano

http://www.vnunet.com/itweek/news/2148500/flash-memory-rival-hard-drive