RobCur:
You must be on the East Coast, but even there you should have seen a more significant price drop. Hard drive prices West Coast are great, for example: seven weeks ago at Fry's Electronics I got a retail Western Digital WD2000JB (200gig 8meg cache, 7200rpm, 3 year warranty) hard drive with Promise TX-2 48-bit LBA controller for $180 after rebate. I saw the exact same drive, again at Fry's for $160 after rebate about two weeks ago. Heck, a year ago I don't even think any IDE drives were available with a capacity over 120gig.
Here is a few prices from the "Hot Deals" forum from the past few days:
Maxtor 160gig $129 after rebate CompUsa
Maxtor 80gig $60 after rebate and coupon Staples
Maxtor 120gig $84 after rebate and coupon Office Depot
Maxtor 80gig $70 after rebate Fry's Electronics