I am a student assistant working in asset management for the state of California's Office of Statewide Health Planning and Development, and my manager said to research the cost of 1 Tara bite hard drives, 32 gig flash drives and inflated hard drives. I couldn’t figure out what it was and today after reading your answer (a member of an IT group I applied to ask what an inflated HD was because I couldn’t find it anywhere on line; which I applied to a week ago) I found that the requestor didn’t know how to describe the size of a hard drive that would make her computer work with Win 7, so she told my manager she needed an Inflated HD. In conclusion our department decided not to do memory upgrades and to just purchase new PCs.
"But seriously, folks." The phrase may have come from an article on "inflated hard drive sizes," commenting that a package that says 750 GB contains a drive that shows up as having 698.6 GB. The old Gigabyte vs. Gibibyte conflation.
(couldn't resist the minor misuse of that last word)