Hey Lenny,
Keep in mind when making your decision that there is no way to add or upgrade, so which ever unit you purchase you will be stuck with until you purchase a whole new unit. Plus the fact that the iPhone OSX is utilizing a portion of your flash for the OS (And additional add-on programs, and web browser cache, etc etc) the decision of which to buy becomes a no-brainer for me. I hope this helps with your decision! Wish me luck on getting on on the 29th, I'll be standing in line for hours just to get one of these babies! Oh, and if they are out of the 8gb model and only have 4gb ones left, I'll probably pass and try my luck online.
Good Luck to Everyone!
Rich