Acknoledging that making a proper bootable flash disk can be quite a challenge for most of its users, TeamXBMC made a joint effort and created a new script addon facilitating (hopefully!) the creation of an XBMC Live bootable flash disk.

Bootable Disk Wizard (BDW) is designed to run from the live CD or from a properly created bootable flash disk.

XBMC Live Dharma beta1 has the script installed already, please try it and report your experience so that we can make the script more functional and bug-free!

Luigi

Additional Info:

The addon operates on removable disks only; the resulting flash disk is optimised to reduce disk writes.

The disk layout is completely different from what the traditional installer is producing since the latter is creating traditional Linux partitions (root/swap/home etc) while the former creates a properly formatted fat32 disk with the cd files plus a file that is used for permanently storing system changes.

The XBMC profile is also stored on the flash disk in a separate directory to ease access from all OSes.