I don't save any sensitive information or photos to flash drives - even if they're encrypted. I'm just too paranoid about losing them. Corsair's Flash Padlock 2 USB drive might change my mind though with it's clever hardware-based encryption.
The Padlock 2 not only has a physical PIN pad, but it also has 256-bit AES data encryption. Combined this makes it one rather secure 8GB flash drive. There's no pricing information yet. [Corsair]