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Picture of USB thumb drive enclosure in an old Zip IDE.
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I was inspired by this 'ible http://www.instructables.com/id/DIY_USB_quotHard_Drivequot/ to use an old dead HDD to house some USB thumb drives but I was short a torx bit and impatient. So I instead I used a Zip drive that was also dead.
 
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Step 1: Parts List

Picture of Parts List
Parts:
*Old IDE Zip drive.
*USB hub
*USB thumb drive/s
*antistatic bag
*tape
*water droplet

Tools:
*small regular screwdriver
*hobby knife

Step 2: Opening The Zip Drive.

Picture of Opening The Zip Drive.
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Press in on the tabs holding the plastic faceplate and pop the faceplate off.

With a small regular screwdriver pry up the 4 tabs on the top of the drive. They hold the plastic sides tight against the sides of the metal top piece. Press in on the sides of the drive and lift off the top.

Step 3: Remove the Drive Hardware.

Picture of Remove the Drive Hardware.
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Remove the springs at the front of the drive.

Slide the drive carriage back until it stops and lift out.

Yank out the wires.

Step 4: Preparing the Hub.

Picture of Preparing the Hub.
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There was more than enough clearance for this beautiful little travel USB hub but I plan on adding drives in the future so I'm taking it apart now. One screw and a little leverage from a hobby knife was all it took to open it up. On this model the PCB is clearly marked so expect another 'ible at a later date regarding the expansion.

To move the cable guard slide it off the cable and put a tiny drop of water on the cable and slide the guard to a position more to your liking.

Step 5: Praparing the Faceplate.

Picture of Praparing the Faceplate.
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When I first started this mod I wanted to have the light light but after comparing the hole to the nub on the back of my USB cord I realized it was a good tight fit.

Cut a notch in the disk flap to match your cord. In this case 3/16th wide and 1/4th inches deep was the magic dimension.

Lift the flap and gently force the usb plug thro the opening.

Step 6: BAG IT!: Insulating the Hub Leads

Picture of BAG IT!: Insulating the Hub Leads
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An antistatic bag is a quick and slick way of insulating the hub from the sides of the metal enclosure.

Step 7: Reassembly

Picture of Reassembly
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Pop the top back onto the drive.

Slide the bag with hub into the drive and secure the faceplate.

Bend down the metal tabs and Viola!