I remember Ken telling me about this, its great news!

MODS – Multiplexed Optical Data Storage
Physicists at Imperial College London are developing a new optical disk with up to one Terabyte (1,000 Gigabytes) of data, or 472 hours of film, on the size of a CD or DVD.

The 1TB disk would be double sided and dual layer. MODS disks will not be the first to challenge DVDs’ domination of the audiovisual optical disk market. BluRay disks, which have five times the capacity of a DVD at 25GB per layer, are expected to be released towards the end of 2005 for the home market.

MODS disks would cost approximately the same to manufacture as an ordinary DVD and any system playing them would be backwards compatible with existing optical formats — meaning that CDs and DVDs could be played on a MODS system. They could be on the shelves between by 2010.

(Via the Science Blog)