128 MB is a fairly big drive so I think you can use it for portable applications as well such as portable Firefox and so on if you wish. This way you can take all the bookmarks etc wherever you go and don't really have to worry about it. Apart form storing data there's nothing much you can do with USB flash drive's (except perhaps use it as a key chain or like Mike said a fashion statement). I mainly use mine for assignments and so on and instead of e-mailing stuff to myself I just carry it around with me (along with stuff like portable firefox etc).

That's why usually when you have no use for a actual USB I would recommend getting an iPod (shuffle or something similar) so that you can store data if you wish and along with that you have an mp3 player you can use.

By the way no matter what you decide to put on it, make sure you try to get get trucrypt... to protect (and encrypt) the data (even if you might consider it of low importance).