Usually usb mass storage benders will not support linux on therir drivers because "it isn't the elephant in the room" or simply put it aint windows go away.

I searched in for Linux in their USB flash Drive sections:

Amazon

Newegg

I like the Kingston DataTraveler Generation 3 (G3) because, according to usb-flash-drive-review.toptenreviews.com, features like file encryption which I think may mess up a linux distro. I read somewhere that the 16GB and 32GB versions of this drive can read at 10MB/sec and write at 5MB/sec which is adequate for the average user.

If the software won't mess up Linux, then I go with the Transcend JetFlash 700 which not only is 3.0 compatible, but has a lifetime warranty. The only drawbacks is that the support isn't so great, and online form which rescuers from Amazon's say doesn't get a response sometimes, and the software does take about 2 GB on a stick according to the Amazon reviews.

No complaints with Walmart sold Sandisk brand. Knoppix works fine on them , I have never got a bad one or had one malfunction. Unlike everything else it seems that the bigger thumb drive you buy in stores the worse deal you get on them so if you want one that is bigger than 16 gigs I would price one on line.

i am running fedora-15-live on an 8 gb hp 100w and xbmc-live on a 2 gb sandisk. i've had others in the past, i dont remember ever having a problem.

To run Linux off of a pen drive, use unetbootin.

If it is just being used as storage, use Q-parted and format it as ext3. Don't leave it formatted as FAT or NTFS. Linux isn't windows.

Linux can encrypt a USB drive as well.