The original announcement was that the T-Mobile G1 was only going to support up to 8GB of external memory out of the box and would require a firmware update for any greater capacities.
Well, in a little bit of good news, it seems that the firmware update is not going to be necessary after all. A Google spokesperson has recently confirmed that the recently announced 16GB microSDHC memory cards from SanDisk are already working and that no new firmware will be required. Currently those 16GB cards are expected to be available beginning this October and will retail for around $100.
Via [Android Community]
That sounds more than fantastic. I was just looking for some mobile with 16gb memory support but still having love in G1. I'll give it a try today!