The Infamous Grimace writes: "The folks at this Japanese web site have provided pics of the inside of an iPod. A quick breakdown of it in English is here. The FireWire contoller appears to be TIs TSB43AA82, the chip is PortalPlayers PP5002B w/ an ARM7TDMI-based core. Apparently it has encoding abilities as well. The hard-drive is Toshiba's MK5002MAL."
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