So, they're pretty much trying to create a copy of MojoPac
) and call it their own? MojoPac does the same thing for Windows, but it's not tied to a single physical device. The good part about this is that when I upgraded from an iPod to an external HD, I was able to take the entire setup with me without a problem. Unfortunately for MS, they are teaming up with a flash disk manufacturer rather than an HD maker. I found that trying to run any real app such as Office off a flash drive was impossibly slow. The reason I upgraded from my iPod to an custom external 7200rpm drive was for the sake of speed. The iPod was faster than running off a flash disk, but was still too slow for most things. Now, I can run all the important applications (e.g. GIMP, and WoW) without any noticeable performance hit off my external drive via MojoPac. It will be interesting to see how MS/Sandisk compare in terms of performance speed to MojoPac. Given how bad U3 was, I would be surprised if they can get it fast enough to run any games off of the device.
Unless they can get enough performance off the flash disk to run Office, I don't see them as being a real competitor to MojoPac.