Mine works fine as well. It almost fell apart pulling it out of the usb port once, but once I clicked it all back together it's seemed more solid and hasn't felt like it's coming apart since.
Also I use a USB 1.1 port rather than a 2.0, the write speeds are slower but after hearing the stories of it overheating I thought it might be a safer bet!
That's an interesting point. I wonder if using USB 2.0 might be part of the problem. I've been using 1.1 with no problems. I wonder if the guy whose card caught fire was using USB 2.0 at the time.