Its many people wish to have an operating system to be ported to an USB drive , so that they can work any where any system and work on it and save the data .
This cool feature of ubuntu came up with the release of live usb creator , Its very much easy to create your own installation of ubuntu ported into an USB.
Live USB creator can used like a regular OS .. Any changes you make , any files or programs you install would be retained even the next time you boot the usb.
Following guide lines Steps takes you through how to install ubuntu to an usb.(Note : Recommended pen drive capacity is 2GB and entire drive should be formatter)
NOTE : If you dont have the ubuntu live cd , you could specify the location of the ISO file of ubuntu 9.04 later on.

In the above screen shot the ubuntu live cd as well the usb drive has been detected


Good luck !
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Well, i’m using RIGHT NOW ubuntu 10.04 on my 8GB usb stick but i did it in a really diferent way. I use an virtual machine and add the usb device. When i run the Live Cd inside the virtual machine, the usb drive can be use to install ubuntu. You can also do it with you computer, just like if you were installing ubuntu with the normal installer but i recomend to unplug the Hard Disk becouse grub messed up with my laptop the last time and i was scared hehe
Thanks!