Following up this thread ... just heard of this interesting
development:

http://www.prnewswire.com/news-releases/lockheed-martin-introduces-ironcladtm---secure-computing-on-a-usb-flash-drive-81977922.html

http://www.lockheedmartin.com/products/IronClad/

Ted

On 18 Nov 2009 12:10:01 -0800, Ted Stern wrote:
>
> Hi all,
>
> I'm interested in putting together a customized secure thumb drive
> linux distribution as a demo project.
>
> Primary goals:
>
>   - Security, security, security.  This OS should make any HW safe to
>     run on, and provide a safe environment from which to connect to a
>     secure network from outside the firewall, via secure VPN.
>
>   - Read-only OS partition, passphrase encrypted.
>
>   - Run solid anti-virus, firewall and rootkit detectors by default.
>     [Is rootkit detection necessary if /boot, /bin, /sbin, /usr and
>     /etc are read-only?]
>
>   - Read-write /home partition, at least 1GB, passphrase encrypted, to
>     store persistent user data.
>
>   - Backup software to mirror user data when plugged into secure
>     docking station.
>
>   - Mechanism to upgrade OS partition on a regular basis to handle
>     security updates.
>
>   - Support for secure VPN software.
>
> Optional goodies:
>
>   - Either KDE or Gnome available from kdm/gdm login screen.
>
>   - Netbook edition.
>
>   - Firefox, OpenJDK, VNC, texlive, OpenOffice, etc.
>
>   - Non-free software such as Adobe Macromedia Flash, Skype, etc.
>
> The idea here is to demonstrate that, rather than provide a secure
> laptop to every employee who needs access from outside, you could
> accomplish the same goals with a secure bootable thumb drive.
> Departments could save capital, avoid the Microsoft tax and make
> employees more productive.
>
> I'm shooting for OS + packages under 7GB, which I think is more than
> reasonable.  On a 16GB USB drive, you could have a relatively large
> user space for under 40 dollars.
>
> I think I could do this with Ubuntu, but am open to suggestions.
>
> The floor is open ... :-)
>
> Ted

-- 
 Frango ut patefaciam -- I break so that I may reveal

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