Some time ago, Enagadget reported that Microsoft announced that it
was teaming up with SanDisk last May to conjure up a suitable U3
replacement, to create a “new experience” for USB flash drives and
memory cards. According to the two companies, the new technology will
expand on and replace U3, and will let users carry their full personal
computing environment (including their familiar interface) with them in
addition to a few applications.

And now, after almost one year, rumors are that the Startkey,
the so-called Windows companion would essentially allow users to “carry
their Windows and Windows Live settings with them” on any sort of flash
memory device — be it a USB drive, SD card, etc. Interestingly, it’s
also being reported that Microsoft would like to “build an end-to-end
StartKey environment,” just like the U3.

Pesonally, I’ve owned a U3 drive, when
they came out, and I simply loved them. However, the main problem with
U3 drives is that they have a little corruption issue, especially if
they are improperly removed from the usb port, and once the U3 OS is
corrupted, or the drive is formatted, there is no way to restore it.
Lets hope that the StartKey, which looks really usefull, has a way
around this problem, because if so, it will be a real help to
Windows-Live users especially as well as a proper replacement to the U3.