Title Goes Here
Yep, it allows for SD Cards - but they can not be switched during use. See http://www.microsoft.com/windowsphone/en-gb/howto/wp7/basics/sd-cards-and-my-phone.aspx
From that page, one quote that really makes no sense to me is "Windows Phone uses a special high–performance SD card that works differently from SD cards in other devices."
From what it says in the rest of the article, it sounds more likely (pure speculation) that they mean it formats the SD card into a special file system that is encrypted and set up to distribute the data with the internal storage. Switch a card on that and watch data go bye bye.
Any chance of me getting one of these went out the window when T-Mobile opted not to stock the HD7. The Omnia looks interesting, but I'll be moving from Windows Mobile (for the last 4 years) to Droid and the HTC Desire HD.
If Microsoft do still have a mobile platform at my next upgrade, I'll look in again, but in many ways, it's too much of a risk to buy into. Making a phone choice for the next 18 months / 2 years involves a degree of peeking into the future, and with such a new OS... I suppose I'm saying I'll look again after SP1.