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Haven't tried it out, but some of the older USB memory flash drives are not able to take advantage of ReadyBoost... heard it will speed up computers with low amount of memory such as 512 MB...
The disadvantage really is that using readyboost can wear out the flash drive quicker since it uses alot of write cycles which there is a limited number of on a USB flash drive, although they aren't a problem since flash drives are cheap now-a-days. You can easily get a 4GB flash drive for around $10 online while a 16GB will set you back around $30 online.
Also, RAM is alot faster than Flash Drives because RAM operates at a higher bandwidth than USB Flash Drives (Most flashdrives operate at 480 mbps USB, which isn't constant.) and Readyboost really can't compare to the performance of DDR, DDR2 and DDR3 since they have alot faster transfer rates. Also, RAM isn't really all that expensive (unless you are looking at DDR3 RAM).
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