Difficulties in understanding the hard state are illustrated by results obtained for XTE J1118+480, a BHB with an extraordinarily small interstellar attenuation (e.g., only 30% at 0.3 keV) and a display of weak outbursts confined to the hard state. This source provides the best direct determination of the apparent temperature and radius of the inner disk in the hard state. Using simultaneous HST, EUVE, and Chandra observations (McClintock et al. 2001), the disk was found to be unusually large (∼) and cool (∼0.024 keV). Slightly higher temperatures ( keV) were inferred from observations with BeppoSAX (Frontera et al. 2003). Though it seems clear that the blackbody radiation is truncated at a large radius, the physical condition of material within this radius remains uncertain. Alternative scenarios include a thermal advection-dominated accretion flow (ADAF; Esin et al. 2001), a radiative transition to synchrotron emission in a relativistic flow that is entrained in a jet (Markoff et al. 2001), and a radiative transition to a Compton corona (Frontera et al. 2003), which must then be sufficiently optically thick to mask the ∼1 keV thermal component normally seen from the disk. Such a corona might be a hot wind leaving the disk (Blandford & Begelman 1999; 2004).