Kingston Data Traveller 2GB USB, Buy 2 Get 1 Free ($17.9 each)
Offer from Shoppingsquare:
“Kingston Promotional Offer - 3 Days ONLY.
Buy 2 pieces of Kingston 2GB USB Flash Drive and get extra 1 piece for FREE
*Only $17.9 each after discount!
Offer ending on 3rd July, 2007”
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I agree that the postage is on the expensive side, but also note that online shops usually have a more unified postage price, i.e. they don’t have postage price for individual items unless it is on the heavy side.
I’ll prefer shops that offer pick up options though. However many of them also do drop shipping so they don’t even have the items in stock.

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It is listed as $26.95 which is already the cheapest Kingston Data Traveller 2GB I can find. It is not the cheapest 2GB Flash out there (price comparison on staticICE), but I guess Kingston is a reputable brand. Buy 2 get 1 free makes it even better.
However the delivery fee is relatively high ($9.99/item to Sydney) comparing to the price of the item. Buy 2 get 1 free + delivery fee for all three - combine package discount still yields $24.63/2GB USB key delivered. Still pretty good I guess.
I think the only problem would be — what do I need 3x 2GB USB key for? RAID5 them?