I don't know exactly how much space it takes up but I wouldn't worry about it, you have more then enough space. the only disadvantage of downloading is that you don't get a manual or a headset.
they should have brought the 40gb out from the start. they had to stop the 60gb because it cost's sony to much to make, the 20gb just didn't have enough things altogether such as a lack of wifi. They should have brought out the 40gb and 80gb together and left it at that
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