I am using Gentoo Linux with 2.6.21-suspend2-r7 kernel. I don't know if I have missed out on some part in kernel compilation, but all USB Transfers seem to be pretty slow. I get an average speed of around 2MBPs and after a while the transfer stalls completely. Not to mention the USB version is 2.0 and the Flash Drives are working very well on Windows. I don't know if this is an issue with Linux in general.
Regards, Amit.