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[Adam McDaniel <adam@xxxxxxxxx>]

I agree about the chicken/egg problem. The 2.6.24-21-eeepc kernel has
USB_PERSIST enabled by default, for all connections. Theoretically it
should work.

However, I believe this USB_PERSIST is for only valid while suspending,
not hibernating.

-- 
Hibernate with SD does not work
https://bugs.launchpad.net/bugs/244057
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Status in Ubuntu Eee: Confirmed

Bug description:
If installed on an SD card hibernate does not work. The system comes up again and prints out warning (sdb assuming write through cache IIRC). It is not possible to start new applications or use the ones running. Sometimes an i/o error is shown. I believe I read that the SD is not re-mounted so that might be the problem.