This handy tool from HP will format your USB thumb drive and copy DOS files over to it.
You can even set up your USB thumb drive to boot Windows XP thanks to Bart Lagerweij’s BartPE tools.
Using Password Safe, you can securely carry all of your passwords around with you.
Windows uses shell folders to indicate the default location for many types of settings and data. Move them to your USB drive for privacy and security.
Run applications right off of your USB drive, making it easy to switch computers and keep your settings with you.
Use Windows Briefcase to keep your files updated and in sync automatically.
I once washed my Lexar JumpDrive Sport USB Flash Drive. To my surprise, it still worked and all files were intact.
You can even find a USB drive in a Swiss Army knife.
Oh yea, you can also use your USB thumb drive to store data.