Wink claims it has created the worlds smallest 16GB flash drive (as of Nov 2009). The Active Media Wink flash drive measures only 0.1 inches thick  and is available in  2GB, 4GB, 8GB and 16GB sizes. With a  sealed protective case the drive is also waterproof.

Specifications

The delicate electronics are encapsulated in a waterproof COB unit, which is in turn protected by a high-impact polymer case

16GB Wink USB Flash Drive

Ultra-Small: 1.2 x 0.5 x 0.1 inches (30 x 12 x 2.5 mm); weighs 1/20 oz

Waterproof; Shock resistant

Keychain and Keyring included

Supports Windows 7, Vista, XP, OS X, Linux

The 16gb Active Media Wink flash drive is available to purchase from Amazon for $37.95

Via Ubergizmo