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I have a 16GB iPad2 and I've never had a problem when it comes to space.
You are only going to watch a movie once, why keep it on there? Delete or backup to iMac / whatever.
I have been tempted to just add the Sky Sports package - I've been reading the Virgin Media forums and someone posted this yesterday which is interesting: -
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You only need to have the package for 30 days before you can cancel so the above could work out a cheaper way to actually have the F1...