Kingston Technology has announced the most secure USB drive ever. So secure that it is the first USB drive to have been FIPS-certified by the U.S. Government. The Kingston DataTraveler BlackBox has 256-bit hardware-based AES encryption, as well as a system to lock the drive after 10 unsuccessful password attempts. When I say “lock” I mean that not even the owner can retrieve files.
The DataTraveler BlackBox comes in 3 capacities: 2GB for $165, 4GB for $242, and a rather large 8GB for $424.
Actually the Ironkey has been FIPS certifed for over a year.