Quote from: franky1 on October 06, 2012, 09:10:57 PM

no need to build a device just use a USB stick MP3 player such as
http://www.1topstore.com/en-gbp/2gb-lcd-mp3-player-usb-flash-drive-built-in-fm-radio-p8840.html and just change the firmware..

Yes, but that would be more expensive.

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or secondly if your just trying to prevent someone from just using your pc to hack coins by requiring a USB stick to confirm payments..then just use a plain usb stick. make it so the new client wont transmit payment unless a USB stick is inserted containing the wallet or even a special file which the client references. then just dont plug it in untill u need to send payments.

That wouldn't work. A skilled malware writer could modify the client so the client didn't need the USB stick, or sent the money to the wrong account.

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or thirdly why even need a extra usb stick hanging off your keyring.. phones have bluetooth and wifi these days so transmitting a transaction does not require a USB stick insertion into a PC and if u were thinking of using it to plug into merchants POS terminal at stores. it saves risks of some savvy merchant adding a trojan to their POS terminal to clone wallets plugged in.

First of all, this thing isn't for POS terminals. It's designed to keep you secure if your own computer gets malware.
Second, even if you inserted this into a malicious terminal, it can't extract the wallet. The device only knows a very limited set of commands: "install this wallet" and "sign his transaction", so you can't clone a wallet from it.