Hitachi's 'Microdrive', famous for being one of the few extremely small (1 Inch!), is getting beefed up. Microdrives have been popular in embedded devices and media devices such as mp3 players. The improvements include an increase to storage capacity, from 6GB to 8GB, 'ESP', a self-labeled shock-protection system that will give the drives longer life, and reduced power consumption. All of these are very important for mobile devices.
Hitachi's Travelstar line is also getting these improvements, moving up to 30GB and reducing the height of the drive. Travelstars are 1.8", making quite a bit smaller than a laptop hard drive. Both the Travelstar and Microdrive lines will be getting further face lifts this coming January, with 10GB Microdrive and 80GB Travelstar models.