Reddit mentions of Kingston Digital 32GB DataTraveler 101 G2 USB 2.0 Drive - Purple (DT101G2/32GBZET)

Depends on what you want to use it for.

Your app selection becomes considerably more convenient if you load the google play store:

http://www.s-config.com/root-the-ouya-google-play/

If you want to rock some multiplayer gaming and you have an XBox 360, one of these will be super handy (adapter to use your wifi controllers through Ouya USB):

http://www.amazon.com/Xbox-360-Wireless-Gaming-Receiver-Windows/dp/B000HZFCT2/ref=sr_1_4/187-6579901-8733413?s=electronics&ie=UTF8&qid=1408936752&sr=1-4&keywords=xbox+360+wireless+adapter

Also, you'll want a nice spacious USB stick if you plan on storing lots of games:

http://www.amazon.com/PNY-Turbo-64GB-drive-P-FD64GTBOP-GE/dp/B00FDUHDAC/ref=sr_1_6?s=electronics&ie=UTF8&qid=1408936816&sr=1-6&keywords=64+gb+usb+flash+drive

If you're low on funds maybe just opt for 32 GB:

http://www.amazon.com/Kingston-Digital-32GB-DataTraveler-Drive/dp/B004TS1J1S/ref=sr_1_9?s=electronics&ie=UTF8&qid=1408936816&sr=1-9&keywords=64+gb+usb+flash+drive

If you plan on using several USB peripherals, I really recommend a powered USB hub:

http://www.amazon.com/Plugable-Port-12-5W-Power-Adapter/dp/B00483WRZ6/ref=sr_1_9?s=electronics&ie=UTF8&qid=1408936981&sr=1-9&keywords=powered+usb+hub

These are all suggestions and you likely have a bunch of this stuff already. Just know that most games work great with an xbox or PS3 controller. If you want just some cheap USB controllers for friends to play with, Gamestop is currently selling the Gamestick controller for $10. It's not wonderful, but that's why you make your friends use it :) YOUR MILEAGE MAY VARY WITH GAME COMPATIBILITY. These worked for me with Towerfall and NES.EMU but not for some other games.

http://www.gamestop.com/android/accessories/gamestick-controller/109153

Must have apps:

Plex
FilePwn
NES.EMU
SNES9X
FPSe
Towerfall
Toto Temple Delux
Clarc
Meltdown

As for hiccups, when pairing controllers, you need to be very careful. Whenever I am pairing controllers I need to do things in this order for best results.

1.) Power on Ouya with nothing paired
2.) Pair all OUYA brand controllers
3.) Pair all PS3 Controllers
4.) Pair all USB (Xbox 360 Controllers)

If you try to do things out of order, things get screwy.

Other than that, just know that a lot of us have screwed with the thing quite a bit and if you have any questions we can likely help you out.

Welcome to the club!

12$ For 32GB http://www.amazon.com/Kingston-Digital-32GB-DataTraveler-Drive/dp/B004TS1J1S/ref=sr_1_1?s=electronics&ie=UTF8&qid=1405797389&sr=1-1&keywords=Kingston+Digital+32GB+DataTraveler

Here is a 6 dollar 8 gig flashdrive.

I haven't looked at Encarta in a long time, but last time I did, things were vastly oversimplified. As CowJam said, storage is cheap.Amazon's US site has 32GB for under $30.