I posted this in Nexus 7 thread. Thinking maybe it's useful to post it here too.
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Nexus 7 with USB-OTG is awesome. Picture tiem!
Nexus 7 with 1x Micro USB On-The-Go cable (bought from a LYN user,
mkmobile) and 1x SanDisk's Cruzer Fit USB Flash Drive 32GB.

Plugged the USB flash drive into the OTG cable. Blurred the label - privacy concern.

Mounted with StickMount.

Folders inside /sdcard/ - viewed from inKa File Manager Pro.

Reading a pdf file from the mounted USB flash drive using RepliGo Reader.

All working as expected. I'm a happy camper.