Available in mid-July, the 2GB USB 2.0 Imation Micro Hard Drive will deliver one of the first products based on Toshiba's .85-inch MicroDrive. That loop on top is actually a sweet little integrated USB cable which locks in place. Sure, Tosh wears the Guinness crown for having the world's smallest hard drive — but does that really matter in a world gone mad with 1-inchers from Hitachi and others sporting 8GB and 10GB? Oh, and iMation already sells an even smaller 2GB flash drive albeit for a bit more green and fewer security options. Anyway, the Mac and PC friendly 2GB Micro Hard Drive is expected to sell for $159 while the 4GB version will ship at the end of the year for $189.
P.S. - Click to see some hands-on pics.