I recently replaced my old 128 MB generic USB 1.1 thumbdrive and my old 512 MB Apple iPod Shuffle (the flash drive version) with a new SanDisk Cruzer Micro USB 2.0 thumbdrive (2 GB) which I picked up on clearance at Wal*Mart for only 30 bucks.
I also picked up a wonderful Maxtor Basics Personal Storage 3200 USB 2.0 external harddrive (360 GB) for pretty cheap there, too. Nice!
Tip: if your USB 2.0 devices are detected by your computer when you plug them in, but appropriate drivers cannot be found, all you need to do is point the Found New Hardware Wizard to the "c:\windows\inf" folder. (As opposed to the system, system32, or system32\drivers folders.) Strange, but a simple fix.
Another Tip: to get rid of the annoying U3 Smart "feature" on many thumbdrives (and thus remove the annoying read-only second partition), and the built-in removal tool doesn't work (LOL), then all you need to do is visit the U3 website and download their U3 removal tool, which actually does work... Also strange, but a simple fix.