New car: Cash or loan?

A friend asked me for advice, and I have no idea. So I'm asking you guys.

Will car dealers change a car's price if they know you'll be paying cash instead of taking a loan?

Cops can seize your money?

In a recent response, acroyear70 pointed out that during a routine traffic stop, cops can confiscate large sums of cash, to investigate whether it is "drug money" -- and even if they never charge you with a crime, you may never get your money back.

A very scary thought, and worthy of examples and details. So here, some bedtime reading to give you nightmares.

Mini-laptops

There are a lot of mini-laptops popping up nowadays, and many of them use solid-state memory instead of traditional hard drives. Kind of like an on-the-mobo flash drive. The problem is that such "hard drives" are limited in size. Can a modern PC really function on 16GB of hard drive? Once you've loaded XP and Office and auntie Virus (she's a sweet old lady), is there any room for anything else?

Yes, I know that full installs of xp and office are about 1.5 and 3 GB, respectively, and I can do the math.

But is 16GB really enough for anything other than running a browser and checking e-mail?