Unfortunately no, that won't work. However, I just did a test with an old USB stick and a copy of...
xubuntu-12.04.1-desktop-i386.iso
...and I can confirm the following:
1. After I reduced the partition size on the USB stick so only 749 MB was available (same as yours) the UNetbootin app was able to create a bootable Xubuntu image on the stick with about 45 MB to spare. So, you can get Xubuntu onto the Dell if you still want to try.
2. I used the GParted app to mess with the partition size on the stick, so once you get Xubuntu installed on the hard drive of the Dell you can use GParted to fix the partition on your USB stick and get your "missing" 1.13 GB back.
You're welcome. Don't give up; you can still win this battle! (BTW, I'm typing this reply from Firefox in Xubuntu after booting from the USB stick I built. It really does work!)
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