You can build a customizable bootable key in multiple ways.  I tend to
have it boot from an ext3/4 file system on the Key itself so that I can
still install new packages while using it and update any files.
Alternative methods are to create a "SquashFS" file system that is
read-only then create a "UnionFS" to combine that read-only media with
a persistent partition on the USB key.  This can enable the updating of
various configuration files on the go and provides for a space to save
documents and such.  For the the first one, all you need is a PC with
either Debian or Ubuntu installed, then install the following packages
via APT:

debootstrap syslinux dosfstools mtools

Then format the USB key with a small 50MB fat32 partition, and a larger
ext3/4 file system.  Mount the ext3/4 file system and run the following
command to bootstrap the OS onto the key:

debootstrap wheezy /target http://ftp.ca.debian.org/debian/

Once Debian is fully installed on the key's partition, you should
perform the following to ensure you can login as "root" and install
additional packages:

mount -t proc proc /target/proc
cp /etc/apt/sources.list /target/etc/apt/sources.list
cp /etc/hosts /target/etc/hosts
cp /etc/resolv.conf /target/etc/resolv.conf
cp /etc/network/interfaces /target/etc/network/interfaces
cp /etc/fstab /target/etc/fstab

Then edit the files for the laptops specific requirements, then perform the 
following:

LANG=C chroot /target
apt-get update
apt-get install locales
dpkg-reconfigure locales
apt-get install linux-image-2.6.32-5-amd64
passwd root

Then there you go!  Next you need to make the USB key bootable via MBR,
as the laptop is most likely no EFI:

LABEL linux
  KERNEL /boot/vmlinuz
  INITRD /boot/initrd.img
  APPEND root=UUID=ecf48df7-29ec-4b03-a40b-faac7bcd6f6c ro quiet

Place this into a file on the key at: /boot/syslinux/syslinux.cfg
Then run: 

syslinux -i /dev/sdb1
dd conv=notrunc bs=440 count=1 if=/usr/lib/syslinux/mbr.bin of=/dev/sdb

Replace "sdb" with the USB key's block device(I cannot stress that enough).

All Done!  The USB key is now a full Debian system that can be updated
and acts as if it were installed on a local hard disc.  For a more
indepth guide, you can see the first part of my blog post here:
http://www.debiandiary.com/blog/Mar.20,2013/full-hard-disc-encryption.html


DebianLive Method(uses SquashFS/UnionFS):
Install the "live-build" package and read the following documentation:
http://live.debian.net/manual/stable/html/live-manual/toc.en.html

The resulting image should be a Hybrid image, which you can either burn
to a DVD/Bluray, or "dd" onto any USB key.

On Tue, 11 Feb 2014 12:57:46 -0600
Roswyne <[email protected]> wrote:

> That sounds pretty cool, Kevin - but I guess it would depend on what the
> machine is being used for. You couldn't take it to a friend's to do
> homework, if it boots off the home network...
> 
> Then again, someone suggested I try a bootable usb stick for my laptop.
> Unfortunately, I know nothing about that sort of thing, and have forgotten
> who suggested it. (sigh)
> On Feb 11, 2014 12:39 PM, "Kevin" <[email protected]> wrote:
> 
> > Another option is to go driveless and boot the laptop over the network for
> > them young ones.  It would also be nice technological experiment to show
> > them as well.  It's definitely more satisfying than plopping in a new drive
> > and installing a run-of-the-mill x86 OS.  If you need any good pointers,
> > guides, or anything in this regard, let me know.  I've set-up a couple PXE
> > Boot environments, including one which can boot into a remote X Windows
> > desktop via XDMCP. :D
> >
> > Here's a few YouTube videos I made to demonstrate this using a Virtual
> > Machine(I also did PXE from an ARM SheevaPlug back when I has full HDD
> > encryption enabled).
> >
> > XDMCP Thin X Server: https://www.youtube.com/watch?v=Pu-bXla5ReI
> > X Thin Client over NFS: https://www.youtube.com/watch?v=Bs6lgvQNkIk
> >
> > There's no audio in this videos btw.
> >
> > On Tue, 11 Feb 2014 00:06:31 -0600
> > Roswyne <[email protected]> wrote:
> >
> > > I was talking to a guy from kijiji who said he had a few small ones
> > > suitable for setting up a Linux system.
> > >
> > > If that's of interest, let me know and I'll look up his info. It didn't
> > > suit my needs, so I didn't follow up.
> > >
> > > A friend also pointed out some new 80gig drives he saw online for $70,
> > if a
> > > larger driver would be better (or you want better reliability).
> > > On Feb 10, 2014 11:14 PM, "R Rodd" <[email protected]> wrote:
> > >
> > > > Hi all,
> > > >
> > > > I have a laptop that hasn't been used in 5-6 years since it failed to
> > boot
> > > > one day.  Tonight I took the drive out, hooked it up to an IDE->USB
> > > > adapter, and have determined that the drive is faulty as suspected
> > (yes, my
> > > > to-do list of chores around the house is that long .. and longer).
> > > >
> > > > As the kids are getting to the age where having a homework and
> > edutainment
> > > > system would be useful I would like to find a drive for it.  I'm
> > certainly
> > > > not picky about speed or storage size for this system.  If someone has
> > such
> > > > a drive (2.5" IDE) resting in a drawer in their home-office or
> > workshop the
> > > > kids and I would be grateful for an organ transplant.
> > > >
> > > > With thanks,
> > > >  - Richard
> > > >
> > > > _______________________________________________
> > > > SkullSpace Discuss Mailing List
> > > > Help: http://www.skullspace.ca/wiki/index.php/Mailing_List#Discuss
> > > > Archive: https://groups.google.com/group/skullspace-discuss-archive/
> > > >
> >
> >
> > --
> > Kevin <[email protected]>
> > _______________________________________________
> > SkullSpace Discuss Mailing List
> > Help: http://www.skullspace.ca/wiki/index.php/Mailing_List#Discuss
> > Archive: https://groups.google.com/group/skullspace-discuss-archive/
> >


-- 
Kevin <[email protected]>
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