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US3 software is evil. Just my $0.02.
I got the 4GB version of this drive a while ago, and it's worked great. The slide-in design is a lot nicer than a cap(which always gets lost). Additionally, it seems to be fairly durable. Mine has been through the washing machine and dryer a couple times, and it's still working fine.
Also, I removed the U3 software shortly after getting it.
easy to remove the U3 software - after that works great
I've had this for a year and it's pretty good. A girl at work broke 2 of them by yanking them out of the computer without enough care though. Also the speed is only average. I'm waiting for the Kingston Data Traveler II to come down in price.