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Ubuntu 8.04.3 Persistent USB Flash Drive installation tutorial for current Windows users. This tutorial covers the process of installing Ubuntu Hardy Heron to a USB flash drive using the Live CD to create the partitions and a Windows host to perform the build. Ubuntu will uses the persistence feature to save and restore changes back to the flash drive. Hence your changes and settings can be saved and restored upon subsequent boots. The persistence feature was broken with the release of Ubuntu 8.04.3 and this tutorial includes a fixed initrd.gz that addresses the permissions problem which was pointed out here
Create a Ubuntu 8.04.3 Persistent USB Flash Drive via the Live CD. This tutorial will enable a user to install Ubuntu 8.04 Hardy Heron to a USB flash drive via a running Ubuntu 8 Live CD. The process is similar to the Live CD install via Windows with the exception that you will be performing the process entirely from Ubuntu. This process uses a few less steps, thus could be performed in less time. In addition the persistence feature is being used to save and restore changes on subsequent boots.