If rumor websites are bubbling about the potential future release of an iPod featuring 16GB of NAND memory, such iPod is already there as described by Geektechnique.
After transplanting successfully an 8GB Compact Flash (CF) card into an iPod mini, they have reproduced the operation with a 16GB CF card. It remains unclear why the iPod does not use more than 15GB, but it works. Last but not least, the new black coating turns it into an iPod nano fashion.