U3 LLC unveiled the industry’s very first USB smart drives and U3 smart software applications today.

U3 smart drives host U3 smart applications, computer settings and data allowing people to carry their 'personal workspace' with them and to access it on other PCs.
Kingston, Memorex, SanDisk and Verbatim offer beginning in October USB drives with U3 applications.
U3 showed WinAmp media player, McAfee VirusScan, Trillian chat and Skype running of U3 enabled USB drives.
Kingston Technology offers 512MB and 1GB DataTraveler I smart drives. Memorex offers the Mini TravelDrive in 256MB, 512MB, 1GB and 2GB capacities. SanDisk will offer the Cruzer Micro product line in 512MB and 1GB capacities. Verbatim offers the Store 'n' Go 1GB.
More details in U3 press-release