ReadyBoost is the Windows Vista feature that allows you to use a nonvolatile flash-memory device as virtual memory in order to improve Vista’s performance. While SD, CF, USB drives, and any other flash device will work, 2.5MB/sec throughput for 4K random reads and 1.75MB/sec throughput for 512K random writes are required, and a maximum of 4GB can be used for ReadyBoost.
What does it really do? Long Zheng explains;
ReadyBoost does not improve performance, it only improves responsiveness. It won’t make your system or Photoshop run any faster, but it will make things faster to load and initialize to a working-state.
Skip here for some tests and further explanations.
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