I just bought a 4GB Pop Key in a local supermarket. This device not only works as a simple flash disk but also brings a CD-ROM-Partition with a small security software with it. This just calls for modification...
After some searching, I found a posting on the usboffice.kr blog. Luckily, the Pop Key has a USB ID of
090c:1000 and thus holds an SMI Chip.
With the SMI UFD Utility, you can resize the CD partition or even remove it from the stick.
This way, you can make it e.g. a Windows XP or Windows 7 installation device, use it for the System Rescue CD or - if you can trick the U3 LaunchPad into accepting the stick - burn the U3 software to it to make it U3 compatible.