1. 40GB hard drive
2. Yes
3. The most I have heard of is 2 120GB hard drives.
I don't know the procedure to upgrade, but I'm sure you can find it at www.avsforum.com under the Tivo forum.
BTW, a 120GB hard drive can hold up to 105 hours according to my menu on my upgraded UTV. I have yet to verify it, but I have about 35 hours on mine and it is 43% used.
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