has anyone used this ( http://www.velodyne.com/velodyne/products/product.aspx?ID=17&sid=547w641d ) with their SMS-1 yet?

I hand't seen that before. It's certainly slick looking, and a good concept. Since it works with the Digital Drive subs (which the SMS-1 is a standalone form of, at least as far as the EQ goes) and it does the averaging internally so that a single microphone signal is produced, it should work with the SMS-1 just fine.

It does look pretty slick, but it costs more than the SMS-1!

In the description it states that it works with the SMS-1.

I wonder if Outlaw could sell this for less than suggested retail.

It's certainly possible that Outlaw could add it to their inventory, but I'm guessing it wouldn't be more than $100 or so less than the $799 that Velodyne's selling it for ($100 being the difference between Velo's SRP and Outlaw's price for the SMS-1). I wonder if Velo would consider selling it with a different number of microphones...

If this is any help, the mikes as the one that comes with the SMS1 exactly the same that comes with some Behringer, it's an excellent omnidirectional one.
Wonder what's in the box though...and how it could be used with the SMS1, because of the 200Hz ceiling?

The MIC-5 is presumably designed specifically with the SMS-1's 200Hz ceiling in mind, since the SMS-1 is the same as the Digital Drive subs (they use the same EQ hardware and software).