except known bug in SuSE, this might be caused by your kernel. Try to upgrade, or even get SuSE HEAD 2.6.16.x
Currently I am using 2.6.15 and on average speed is around 280KB/s (Imation ThumbDrive USB2) when transferring ~22MB file. Unless, there is some sort of limit size after which transfer degrades fast, I don't think that I will have your problem
Finally, it might be your hardware
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