For EH-Netters concerned their new toy is broken, IronKey are claiming to not be vulnerable. Full write-up of the weakness and attack vector available from them here

So I called Kingston tech support, as recommended on their page about the vulnerability (http://www.kingston.com/driveupdate/) to see about the update. It's going to be a software patch, and won't be available for a couple weeks yet. He said that they do have one that they're testing now, but don't want to release it without testing it thoroughly.

From reading over the vulnerability, I'm not confident that a software patch will really fix things. I imagine that with all the attention that this has gotten, there will be some enterprising folks beating on the patched version as soon as it comes out.

Sandisk and Kingston provide hardware encryption but only the encryption algorithms are processed in hardware.

This is very different than hardware secured.

Hardware secured products should generate encryption keys in hardware using validated true random number generators.    The password key and counter should also protected by the hardware to prevent brute force password-guessing, patching and replay attacks.  In fact, the drive should not even mount until the password is verified in hardware. 

Verifying passwords in memory was the source of this vulnerability.

My thoughts exactly. They can beef up the mechanism that sends the unlock key to the hardware to make it harder to crack, but it seems like changing to a different method entirely would not be feasible.

Nice move, though a simple patch wouldn't have solved the problem anyway and again such news may have appeared soon. Let's see, if they did it better this time.