I have recently descovered the excellent site http://www.pendrivelinux.com which have new installation tutorial:
* Run Pendrive Linux on USB from Windows without rebooting

This is using Qemu virtual machine and since I prefer the Ubuntu dist I decided to give it a try with a Ubuntu ISO image. 7.10 didn't work but 7.04 did work just fine. So now I can start Ubuntu 7.04 from within a running windows environment and doesn't have to reboot!

Now to my question: Does anyone have experience with the Qemu virtual machine? I cannot access my USB flash memory since it does not show inside the Qemu environment...

I wish to use the Qemu Ubuntu environment when word processing classified documents. And since I disconnect my computer before running the Qemu Ubunto environment - which I have before that decrypted from a truecrypt volumne (for Integrity check and to be immune to mal-code) I should pretty much have a sandbox environment.

My idea for good secrecy is to only store the documents on the dedicated USB flash memory in encrypted state (OpenSSL AES256). That way when I desconnect the USB flash, my computer will not be classified in itself. Sound bothersome? It is somewhat, but I have not found any easier way yet (have chosen not to play with U3-flash though).

I would be grateful for any tips on howto get the USB flash memory to show within the Qemu Ubuntu environment, when I connect them to a running system.

( Oh, by the way: if you prefer you could just as easy have the entire Qemu Ubuntu system running from a USB flash, but I am now using the regular hard drive storage since I am primarily interested in the separation of system and classified documents )

Thanx in advance for all who wish to help me out!