Progress report:

BYO pocket distro please.

Thank you Dave and Andrew for having memory-stick distros ready to
show. Linux Mint worked well and Point Linux looks very promising for
our purposes - http://pointlinux.org

Done, but you have to laugh..

Using the Startup Desk Creator on Ubuntu 12.04 (classic desktop), and the Point Linux iso, I got:

"Installation Failed
An uncaught exception was raised:
Invalid version string 'GNU/Linux'"

- That explain everything!

Moving on. ...

12.04 burnt me a Point Linux CD successfully (mate core), and using the USB-stick-creator available from booting that, I now have my first memory-stick *nix session option available and tested. Hooray!

Next question.

How does one keep settings and data persistent; by redirecting /home to sdb2?

Google time, no doubt.

Cheers

Rik
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