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General Help me understand the Droid memory...

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http://androidforums.com – Coming from iPhone.... I usually always get the 64 GB version as I have a lot of music/video. Since the Galaxy Note 2 is only coming with 16 GB now, with the ability to add a micro SD card...how will that work? What goes on the 16 GB and what goes on the card? How big of a card do I need and what is a good price? So should I go 16 GB phone and a 32 GB card, or get a 64 card. Where to get them cheap? Thanks for explaining. EricE (General)