The documents also indicate that Winnick knew about fiber-optic capacity swap transactions that helped the company appear to be gaining revenue, deals that in fact had no economic value, investigators say.

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It ships with a pair of 3.5-inch 500GB drive which you can swap out for higher capacity spinners at a later date.

ENGADGET: Planex DigiJuke NAS snags YouTube and BitTorrent video -- jams it down the Wii, Xbox 360, iPod... and throat of MPAA

While it should be possible to swap out the memory card on the new iTunes phone for one with more capacity, the person who has seen the handset says the phone's software appears to artificially cap song storage at 25 songs, regardless of how much memory the phone has.

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