Per this post over in a different sub-forum:
I am working on a retrofit circuit board which will replace the one in the PhatNoise cradle and provide full compatibility with Windows 7 (and, presumably, Vista). I expect I'll be able to sell this board for between $35 and $50, depending on how many I make. I will publish the full specs (schematic, parts list, PCB layout, and firmware source) once it is completed, so that no-one will ever be stuck with this problem (of unsupported cradles) ever again.
This circuit board should also fit in the USB1 cradles, which will allow them to be updated to be useful, instead of doorstops. Even if you're running an OS where the USB1 cradle works, upgrading to a USB 2 board will greatly improve file transfer to the DMS (assuming your computer has a USB 2 port, otherwise the new board will still run at USB1 speeds).
I have a prototype up and running and have tested it with PMM (Music, not Media), PhatVoice, and the PhatHack DMS Tools.
That's sufficient for my needs, but I'm willing to go ahead and do a real PC board that will fit in the cradle, replacing the existing board. The same power supply used for the USB 2 cradle will work; the older USB1 cradles will likely need a replacement power supply as well.
Per my original post, I expect the complete board will cost between $35 and $50. I'd like to get an idea of how many people would be interested in purchasing one of these so I can make a decision on whether or not to proceed. I'm not asking for a committment to buy, just gauging interest.
For the techno-geeks here, the new design uses the Cypress Semiconductor EZ-USB AT2LP CY7C68300C. Here's a desktop snapshot with all of the relevant info (click on the pic for a full-size version):
Edit - if there are any Mac users who would like to try a prototype and report back if it works on a Mac, I'd be glad to send you one of the 2 prototypes for testing. Note that you'll need to remove the drive from the DMS and install it on the prototype board for the test (the prototype boards don't have a DMS connector, only a mini-IDE one).