USB Drive ICON .. How?

Yeah, change it like any normal file's icon and it should be remembered... You can change an icon by selecting the drive and then using the Get Info feature in the File menu. Select the icon in the top left and paste over it with the icon you want.

USB Drive ICON .. What?

Fair play yes I have the .icon file I want to use, cmd+I top left icon you can drag and drop or just Edit>Copy+Paste

BUT?

it doesn't accept my .ico file, should I convert it into a .png or what is it please?

USB Drive ICON .. for 500+ USB Drives?

It's all very well and good to change the icon of one drive so that you can personalize it - Easy!

But what if you are dealing with commercial quantities. Surely you're not expected to repeat the process 1000 times?

With PC it's just a matter of including your icon and the instruction file but a USB Key/Drive is external and should be Hybrid Mac/PC.

So what would you do for the Mac to propagate the changed icon to all the drives?

You could use free software like LiteIcon to change the icon for all USB drives.

thanks a million for the suggestion that's great, I am going to give it a try staight ahead

Also, in Mac OS X you don't need .ico files but .icns files. You can convert images to .icns with img2icns.