Newegg has the SanDisk SDCZ36-032G-B35 32GB Cruzer USB 2.0 Flash Drive for $29 with free shipping. Compatible with PC (XP, Vista), Mac, and Linux (storage only).
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Would this work in a 4GB XBox 360?
I have the 16Gb version, and it's slow. I tend to use a class 10 SDHC card to transfer data these days, it's way faster than these sticks
True these aren't the fastest way to transfer data but they are damn convenient. The Cruzer is a great piece of hardware, has a retractable plug and has a very durable build quality. Mine has gone through the wash twice and I didn't lose a byte. The software on the other hand is a little better than useless. The older U3 software worked pretty well although some did not like it. The new software they are using is laughable. Format the stick and install TrueCrypt and you'll be happy.
#1 I think the limit on the 360 is 16GB for flash storage.
Decent drive, as #2 said it is SLOW!
Everything is going 3.0 now