hi naresh,
use USB option.
The follwoing is taken from the mailing list:
Hi Shan,
  to install it on USB stick :  
http://moblin.org/documentation/test-drive-moblin/using-moblin-live-image

Under Linux machine :

1 --- Download the Live Image
2 --- umount <usb-drive>
3 --- Download image-writer program
4 --- chmod a+x ./image-writer
5 --- ./image-writer <image file>

Cheers,
Abdelghani

Please search the mailimg list first.
http://shankhs4u.blogspot.com





________________________________
From: Nareshkumaran <[email protected]>
To: Abdelghani Ouchabane <[email protected]>
Cc: shan chak <[email protected]>; [email protected]
Sent: Fri, 2 October, 2009 12:27:40 AM
Subject: Re: [Moblin Dev] moblin image 2 large for CD

Hi all,  I just downloaded the Moblin IMG. and wish to try it.
The thing is i have a AMD Turion x2 laptop. 
So, can i use the moblin img file from usb. 
how do i run it as a live OS. since i dont have optical drive.


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