Good move for Microsoft with the portable USB flash drive devices...I have used one for quite a while and to be able to carry my "Live" settings and documents with me would be a real plus...BD

Microsoft has some big plans for the small-sized storage devices. Microsoft is imageworking on turning USB-based flash drives into a “Windows companion” — a new product known as “StartKey” — that will allow users to carry their Windows and Windows Live settings with them.

StartKey isn’t just for USB sticks; it also will work on other flash-storage devices, like SD memory cards. Microsoft is looking to turn these intelligent storage devices portable “computing companions” for users in both developed and emerging markets, with availability (at least in beta form) likely before the end of this year, according to sources who asked not to be named.

Microsoft’s goal is to build an end-to-end  StartKey environment — comprised of everything from system software on the flash devices, a software development kit to enable third-party developers to create products that can leverage StartKey, and accompany Microsoft applications and services, sources said.

Microsoft preps StartKey: A ‘Windows companion’ on a USB stick | All about Microsoft | ZDNet.com

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