I wouldnt use a "crappy" drive. I mean it does house the boot partition... I used a garbage 8gb "Dane" flash drive I got at work to test on, and it corrupted within 2 weeks resulting in an unstable system. Ran chkflsh and it had numerous bad sectors.
Ive had really good luck with the kingston data traveler 16gb metal cased drives. Theyre dirt cheap and solid. $7.50/16gb/amazon
Ive had a 16gb at work doing a chkflsh burn test for a few weeks now just to see what kind of life to expect from it and it hasnt found a single error after a few hundred GB of writes.
The speed of the thumb drive does factor into performance -- the boot speed won't matter much, and most operations don't take a lot of time. However, upgrades will depend on performance of the thumb drive.
A thumb drive that costs $10 is not going to be a particularly good one, unless it's on sale.
We continue to recommend a SATA DOM if at all possible.
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