Now that I have a new motherboard that supports booting from a USB, installing and booting Linux on a USB should be a reality. This article details how-to install one using a software tool called UNetbootin, but you need a BIOS that’s able to boot from a USB. That’s where my new motherboard comes in the picture. You can also use the USB drive as a rescue drive for Linux. With USB 3.0, there is plenty of promise in the future. It will be so much faster compared to booting from a CD drive. Read the article.
Check out pendrivelinux.com.