This is an old post, preserved for reference.
The products and services mentioned within are no longer available.
There has been a lot going on in the world of Commodore PET disk drive replacements, following a number of years where there were no options currently available, soon there should be a number of new products on the market. In the absence of anything currently in production, I had looked at the petdisk design and built a board with an improved processor and SD card interface, but which could still run petdisk firmware. I wasn't keen of the use of diode droppers to attach the 3.3V SD card to the 5V microcontroller, so I had used a 3v3 regulator and a level shifter. I made a few of these and they worked, but the petdisk firmware limited what it could do, so I started writing new firmware for it.
PCB version of this, several people suggested I look into PetSD. Pet SD is no longer in production, but was a SD storage system based on SD2IEC, the SD card IEC disk drives that are very popular on the Commodore 64. This gives it support for various commands and file types not supported on the petdisk, and .d64 disk images etc. The original Pet SD had proper IEEE-488 bus drivers, an ethernet interface, USB-serial interface, real time clock, LCD display etc., I had ruled that out when looking around initially, and started instead with the simpler solution. It seems several people were interested in bringing that back, and had been working on new versions. PetSD+, a respin of this, without the ethernet and USB, and PetSD duo, an even more ambitious version with a larger LCD display and an IEC interface for Commodore 64 computers. So I'm now looking and producing a cut down version of Pet SD, in a similar form factor that the ones I've previously built.
2022 Update: I have since designed a much nicer SD drive for a PET. The SD2PET is available from The Future Was 8 bit: SD2PET