EagleTec’s USB Nano Flash Drive is super tiny (easy to lose) and still manages to store 8GB’s of goodies. The tiny flash drive makes sense to me… less chance of breaking your USB port of flash drive from a lengthy appendage. They even put a hole on it so you can attach it to your keychain.
They have an 8GB model for $33 and a 4GB model for $22. See detailed pictures after the break.