Found a good info of using external USB memory thumbdrive as Windows
Virtual Memory.

From tomshardware.com

Adding more memory to your laptop saves power by reducing Windows’
reliance on the virtual memory swap file on your hard disk. In Vista,
plugging in a USB memory stick that you can use for ReadyBoost
(supplementing system memory) can give you longer battery life – we’ve
seen up to 15-20 minutes longer life on a Toshiba tablet PC using a 2GB
USB stick.

Now thats another reason for me to try out Vista (minus all the fancy
graphic effects) when it comes out later…