Yeah I have my old 6GB Ipod Mini plugged into my computer with Readyboost, you don't really notice it but you can tell thats its there.
It does get used as RAM but not nearly any USB or HDD is fast enough, RAM is fast VERY FAST. Maybe they will bring something out that is as fast as RAM. Who Knows?
Intel Core 2 Duo E6600 @ 3400Mhz
BFG 8800GTX OC
Samsung 400 GB Sata II
Corsair XMS2 2GB DDR2 800 5-5-5-12
Zalman CNPS-9700 LED
Antec Nine Hundred
Hp W2207 22" Widescreen Monitor
Windows Vista Home Premium
Silverstone ST60F 600W PSU
Razer Copperhead Tempest Blue Gaming Mouse