Aside from that, I have a story similar to joe_bleau's (and probably many other people). The company I work for buys them in bulk, branded with our company logos and containing promo material. They fail fairly regularly - good enough to get the material to clients, but not good for use after that! Terrible - but it's worth bearing in mind that they're the cheapest the marketing guys could find.
On the positive side I have a Kingston DataTraveler that I think I've had for 4 years, maybe 3. It is used all day, every day and hasn't missed a beat. I've recommended them to family and never heard of any problems.
The important thing to take from this is that if you buy quality, failures are rare - but try to never have only one copy of important data!