I bet you won't find anyone that knows what the 'recommended flash drives' are - there's thousands of them out there. Most of the ones I have are unbranded freebies, used for marketing purposes - how could Honda keep track?
I tried a couple of flash drives out on an EX in the showroom. They worked fine. There's an MP3 'player' embedded in the Jazz somewhere beyond the USB port in the dash. It seems fairly happy with standard flash drives or, if you put an MP3 player in there, it will probably read the MP3 files directly from the memory of your player - that's how you are able to change tracks from the car's controls.
I don't think you will have problems if you copy MP3 files direct from a Windows PC operating system onto the flash storage device, avoiding all the itunes stuff. I'm not certain, though, if there will be a problem with very high bitrate MP3.
I use FLAC lossless format a lot, and that certainly won't play on the Jazz, even though I can play it on my personal player. If you use the more arcane formats [like FLAC] you'll have to use the 3.5mm jack connection, which the new Jazz also provides, but you'll lose control of changing tracks from the Jazz controls.
I've ordered the manual Jazz EX for March delivery. I listen to music all the time in the car, quite loud. So how on earth could I clearly listen out for the engine note to know when to 'feather' the throttle to keep smooth gearchanges on the i-shift? Nope, I'm afraid the i-shift left me cold. Maybe, in 3 years time, I'll trade in the EX Manual for a hybrid CVT. I'll say a very sad goodbye to the CVT box in my current Sport.