I bought a 16 Gig USB drive for $20 yesterday at Frys. This itself is pretty cool, but I figured I'd try to install Fedora 12 onto it. I don't mean a USB livecd-iso-to-disk sort of install, but a real install, where anaconda treats it like a regular disk. I was amazed to see that it installed fine, but also boots perfectly.
I've tried this in the past, probably around Fedora 10, and it didn't work for me, so this is a pleasant surprise.