These Sandisk all-metal flash drives are the best. I had one of the original Cruizer Micro before they started making them out of plastic, and it lasted through years of abuse on my keychain (even without the silicone skin). It was only 512MB, but I never upgraded it since I couldn't find anything else as small and durable. There was a great thread on the 1GB version of this at http://www.fatwallet.com/forums/arcmessageview.php?catid=18&thre...
I think last year, Sandisk reintriduced the all-metal Cruizer Micro in an 8gb model, and it has been my faithful companion ever since. I'm picking up a whole bunch of these as gifts this year.
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