They use a disk compression program, like we used to use on the older Windows formats.
The problem is that our music and videos are already compressed and use actual disk space when loaded on these players.
If you loaded it up with BMP pics then the compression would actually work as they can be compressed more.
For example, take a couple of mp3s and zip them up, take the same amount (size wise) of BMPs and zip them up. You will see that the BMP zip file is much smaller than the mp3 zip file.
When you "unhack" your player you remove this compression and use the true disk space.
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