Just to add a few findings:
Thought this might be helpful for potential buyers.
I have a JB iPad mini and I wanted to store movies and music directly on a USB stick without the need to transfer the data to the iPad internal storage.
It works directly from USB memory using JB iFiles although limited on the file extensions. With JB XBMC, I have not come across a file extension that XBMC is not able to play.
Hope this helps someone