There's a little (free) app that'll do it for you - 
http://www.macupdate.com/app/mac/39701/lion-diskmaker

USB Sticks are horrendously slow!  I have a 120gb pocket drive partitioned into 
3, one is a Snow Leopard Installer, the next is a Lion Installer and the third 
(only since yesterday, of course) is a Mountain Lion Installer.

Chris Webb . Principal
MacService 
Woodside, Brightling Road
Robertsbridge, East Sussex, TN32 5EL 
t: 01580 881212
f: 01580 881313
m: 07770 960632
e: [email protected]
w: www.macservice.co.uk

On 26 Jul 2012, at 15:47, [email protected] wrote:

> Hi all,
> 
> Is it possible to use a USB stick, one of those small things that stick in 
> the USB 2.0 sockets in the back of my iMac, as an OS X Startup Disk? Given 
> that solid state is much faster than HDD and that you can buy 32GB for about 
> £15 would it be a handy way of getting a speedier Mac? I have a nasty feeling 
> that there's some hideous catch though ...
> 
> Yours curiously,
> 
> Stephen
> 
> 
> "Reality leaves a lot to the imagination" - John Lennon
> 
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