It has a microSD expansion slot, and the phone comes with an 8GB card out of the box...
8GB MicroSD????????
Shit, my phone can only handle 2Gig. Doesn't support FAT32 I guess....
Yep, although they're a slightly different variant of the MicroSD forma called SDHC; low capacity MSD cards are forwards-compatible with SDHC, while higher capacity SDHCs are mostly incompatible with older microSD devices (they do work to a certain extent, though).