hI Tom , just to confirm , i have tried usb stick 4 gb and it works.
Following are some problems which i faced.
- you need to format usb with ext2 , now how you manage it if you are windows users like me this is another story

- when your usb stick is ext2 formated then your iliad does not recognize it like normal usb with FAT so always you have to mount it yourself which i handled by copying onescript with "mount /dev/sda1 /mnt/usb -t ext2"
- thrild problem comes that when you use ext2 then linux permission gets applied so in first shot it does not work as phython directory etc. don't have execute permission so i manage that by "chmod 777 " etc. etc.
- though dillo is not liked by AdamB and other fellow but reality is it browse more smoothly than madori or minimo atleast for wikipedia ( or alteast my experience )

- last and not least , it is wonderfull to have wikipedia under my pillow :P