[wesley mcgrew] has been playing around with Sandisk’s U3 Smart USB Drives technology. U3 is designed to make implementation of portable applications easier. The USB drive appears as a CDROM drive and can autorun applications. Wesley has a guide for how to patch in your own CD ISO. This ties in pretty well with the dangers of USB drives that we’ve covered before (one, two) and Schneier has a recent post on USB security issues as well.