I have been wanting to make a wooden USB drive ever since seeing this great Instructable
on it. Recently the plastic housing on one of my USB drives got bent, rendering it hard to use. So I tore it apart and got to work. The thing that appealed to me about this one was that the critical component didn't have the metal sleeve around it so it started out super tiny. I could have made this even smaller than it is, but kept some length for a keyring hole.
You don't need many tools to do this, so have fun!
EDIT: And there's now another wooden USB drive Instructable
out there so check that one out too!