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!
Step 1: What You Need
You'll also need:
- a saw (the smaller and finer, the better)
- a chisel (if it's not sharp, check out my Instructable on sharpening!)
- drill (optional) - for the keyring hole
Step 2: Shim It Up
As I mentioned in one of my comments in the previous step's picture, the USB drive as it is, in its bare state, is too thin to make contact with the USB port. So you have to glue a shim onto the bottom of the drive in order for it to make contact with the port.
So clamp up a piece of wood and then use your saw to slice off a thin piece for your shim. I use Japanese saws myself, love 'em!, but use whatever works for you. I cut my piece way too thick as you can see in the second picture, so I sanded away, testing in the USB port from time to time until the USB drive + shim fit well.