The other day I picked up a one gig USB thumbdrive on sale for ten dollars. Since then I've been thinking about what to do with it, but I'm a bit stumped. I've looked into installing Linux on it (maybe DSL or Puppy), but I was wondering if you guys had any better ideas (I already have a thumbdrive for carrying files around).

light it on fire

i actually lol'ed.

my car stereo has an usb port on it, so.. i'd use it for music in car.

Erm, I dunno. Spread wide and insert? Pull out. Repeat?

http://www.portableapps.com/
http://www.portablefreeware.com/
http://www.mojopac.com/ <-- I've found this software to be rather poor quality, don't be surprised if it hangs your computer.

Definitely portable apps. Having all kinds of neat apps and tools with you at all times is awesome.

Also, check this out:
http://xerobank.com/xB_browser.html
Can use Tor or their own (paid, but faster) network. Great if you're paranoid. If you're really paranoid, check out xB Machine. It's very James Bond.

portable apps is great.