16gb iPad 1. I have about 9gb free. Music comes from iTunes Match, so I have access to about 50gb of music there that can be streamed to the iPad. If I want a movie or two I can fit them in and then delete them when I'm done, although I rarely do it. Most movies come from Netflix streaming or streaming from my home DVR via Vulkano (a Slingbox alternative).
I have no worries about the 16gb new iPad that's on the way to me.