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There's a good writeup on this over at Steve's Digicams. There was a brief flurry of these drives pulling in $300+ over on ebay, but since where to get the "OEM Hitachi drive" became public knowledge, the bottom's fallen out of that market. The going rate seems to be about $225 or so for them now.
New models (of the 4GB CF Microdrive) seem to still go for around $400 or so, so if you're just getting one for yourself, gutting a MuVo seems to be the way to go.
Check carefully the write speed of CF cards. Most CF cards are so slow (especially Sandisk regardless if it is labelled "ultra" or not), that since most cameras have a small internal cache, you can only take 2 pictures of good quality at a time. I paid a high price for a 512 MB transcend CF card that allows me to take 10 pix in rapid succession.