DOA. Buy an iPad and a good laptop for less money.
The real comparison, of course, is to a 32gig iPad, since that will have about the same amount of actual free space as this crapware-monster of a hulking beast of a pseudo-tablet has.
And not to mention, outside of a few apps like OneNote, using Windows XP/Vista/7 in tablet mode is not a super pleasant experience.
The Surface has to succeed or fail as a post-iPad tablet, not on tech specs no one cares about.