Even with lots of space on my thumbdrives, I try not to work on files that are
stored on them. It may be overkill, but by working on copies on the harddrive
and copying to (and from) the thumbdrive, I have a backup built into my
procedure.
And even if I use the "safely remove hardware" tool each time, I could eject
that drive while the file was still being edited.
There have been a few discussions about this in these here newsgroups. Some
people have stated that they work off them all the time and have never had a
problem.
I keep thinking "yet"!
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And I have a USB 160GB harddrive that I treat the same way--so it's probably a
preference more than a rule--but it can't hurt <vbg>.