Do you want to have a persistent OS but run from an ISO file and use grub4dos and have only 4 files on your USB drive? No Problem!
PLEASE NOTE: Many linux versions (including Ubuntu) will not automatically mount a persistent filesystem if it is a file on an NTFS filesystem (i.e. if your casper-rw is file on an NTFS USB drive then it won't work!) However, there is a way around this.
IMPORTANT: This will wipe the 4th partition entry of your boot disk! Make sure that the 4th partition table is empty (use RMPrepUSB - Drive Info - 0 to check). For more info see my blog post here. The partnew command creates a partition entry which points to the persistent file. As linux just sees a partition on a hard disk that is an ext2 partition it quite happily mounts it! Your usb pen should now contain these 4 files:
Now double-click on USB drive icon to mount it and view a drives contents.
Instructions for installing from USB to Hard Disk can be found here.
To install onto a hard disk alongside Windows 7, choose 'Something else'
and then choose a 5GB+ partition to install Ubuntu to. The partition will be re-formatted so you need to make sure that there is nothing you want on it. You can first use EaSeus Home Partition Manager to shrink an existing partition if you like and then create a new partition. Top things to do after installing Ubuntu 11.04 Natty Narwhal (includes installing Flash and getting latest updates).
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