Just got a new toy a few weeks ago - a Kanguru 4 GB Encrypted Micro Drive.
Its about the size of your key fob.
It has 256 bit AES encryption built in, and HS USB 2.0
It is the first - and so far only Flash drive to meet US Federal Requirements for encrypted data storage.
It is Plug n Play, it works with almost any OS - in most cases without any drivers, and it is shock resistant to 1000 G w/ 1 year data retention.
2 & 4 GB are available from $250 - $550.00
I LOVE this thing.
This is one hot item on the international market at the moment...
R