This seems to be a widespread problem with the Archos 101 tablet. There have been 2 firmware updates since the problem was first reported, and neither seems to have fixed the issue for anybody, which strongly suggests that it is a hardware issue, in which case you'll need to do an RMA. I recommend contacting the retailer you purchased through so you can get a replacement unit or a refund.
The problem is fixed from what I can tell, in the newest firmware release. You simply run the Archos update process (on the unit), it downloads the new firmware, and when you reboot, you can see the memory stick. It worked here no problems, thanks.
Changelog here reports it fixed:http://update.archos.com/8/gen8/changes_...
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