As Ryan said, the computer view of memory is not appropriate.
First of all, memory is kind of an umbrella term. There are several different types of memory (procedural, episodic, and semantic for instance) and the idea that we just kind of store memories indefinitely like a computer is flawed. Every time we recall information, some modeling has to take place to "fill in the gaps". This is why eye witnesses are infamous for their lack of reliability... every time they think about the past, some information will be lost, and some will be replaced with incorrect information. One of the brain's functional goals is to preserve the integrity of the organisms world model: in this way, minor factual details may be altered to keep the world model consistent.
So most memories are worked into a generalized model of the universe via the hippocampus, which (so says the current theory) takes a bunch of little memories and integrates them into one memory, then while you sleep, the hippocampus updates the rest of your neocortex with the generalizations (for instance, updating your semantic memory via hebbian learning by evoking activity in the temporal lobes... if you had a new experience with a dog the day before, your definition of a dog might be updated if new, novel information about dogs was discovered).
Christoph Koch does a lot of work with this. He finds "concept" neurons in the temporal lobes that only fire in response to a particular holistic stimulus (i.e. the "Beatles" neuron will fire only when the subject sees a picture of the Beatles or even the word 'Beatles' on the screen; so it's the concept, not the visual stimulus)
Of course, this isn't to say that that one neuron completely encodes the Beatles. The neuron is involved in a complicated network, so we are only looking at the tip of the iceberg.
Moran Cerf, Nikhil Thiruvengadam, Florian Mormann,Alexander Kraskov,Rodrigo Quian Quiroga, Christof Koch & Itzhak Fried, On-line, voluntary control of human temporal lobe neurons, Nature 467, 1104–1108 (28 October 2010) doi:10.1038/nature09510