Hi Cody,
Thanks for the reply. Unfortunately I can't do any tests of my own on my XP machine because 7 has replaced it but it does feel slower. Perhaps it's just my imagination. I noticed that if I copied that 1 GB file to the flash drive that if I cancel it the computer locks up and will only respond if I pull out the flash drive (can't even disconnect it properly. I have to just pull it out). Is this a bug or just something related to my out-dated chipset drivers?
I have had this problem for years, after I upgraded from XP -- and I still had the XP system back then to test against -- Windows 7 is easily 10 times slower. I tried setting the drive policy to "more performance" that didn't do much.
Now I just boot from Linux Mint anytime I need to copy a lot of data to a flash drive. I downloaded the Linux Mint iso, created the boot DVD and booted it up. Linux Mint sees all the windows drives and the flash drives and you can pretty much copy the same way Windows should. Since the entire Linux Mint OS is on the DVD, there are no changes to your system. For copying large amounts of data, rebooting from the Linux Mint DVD doing the copy, and booting back to Windows 7 is much faster than waiting hours and hours for Windows 7 to do the same copy. Mint has web browsers and other apps available, so you can get to your favorite web sites or even do some other work, while Mint is copying to your flash drive. Linux Mint boot .iso is free at http://www.linuxmint.com/download.php
Eventually, I hope Microsoft resolves this issue, but its been going on since Vista days, so don't hold your breath.