If you boot up the LiveCD and start the install process, you'll see the USB drive as a normal disk and you can install to it. Just make sure to install Grub to the USB drive. I posted a link to detailed instructions here.
If you boot up the LiveCD and start the install process, you'll see the USB drive as a normal disk and you can install to it. Just make sure to install Grub to the USB drive. I posted a link to detailed instructions here.
Two different things:
A installation "CD" to be run from the USB.
An installed Ubuntu operating system.
The second one will probably have the drivers set to your hardware... and you will have to work that out. You can make an Ubuntu install to USB2 from USB1, which should be the Live CD.
To get the first one, the simplest way is to have Karmic running somewhere (if you have Windows and 5GB free, just do a Wubi install, it takes 25min), and use the Usb Creator tool (System -> Administration -> USB something) to "burn" the downloaded Ubuntu ISO to USB1.
Then boot from USB1, open the Desktop, insert USB2 and see if it mounts it, and then install to USB2.
When producing USB1, you can also at this point use S->A->Disk Utilities to partition and format USB2, so that it will be ready for the installation.
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