Does SYNC have hard drive?

I was watching a Comcast on-demand "Searchlight" ad last night about the 2008 Focus. It was said that SYNC copies your mp3 files to a "hard drive"
This is the only mention of a hard drive that I've heard of. So do you need to only allow SYNC to transfer your files the first time to a hard drive in the car, then you don't need your mp3 player to play songs after that? Not that it's a big deal, as I intend to copy my music to a usb thumb drive.

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