You are asking in the wrong place since everybody here is perfectly capable of doing it themselves.
Depending on hardware used, it is possible with a bit of tweakery.
http://www.ngine.de/index.jsp?pageid=4176
Don't give out warranties, if they are heavily used then they won't last long.
To be honest: it's a bad business plan doomed to failure, but you might make some money selling them to ignorant locals.
Several years ago, I would have said, "Yes". But Ubuntu has succeeded in making Linux easy enough to install that I don't think you would have many buyers. I would buy a flash drive preloaded with Ubuntu from the Ubuntu shop just to have a cool Ubuntu branded flashdrive, but I wouldn't be likely to buy a generic drive from you or anyone else just because it had a linux distro on it. Sorry to rain on your parade. People inclined to want to run Linux from a flash drive probably already have the ability to quickly create the drive themselves.
Maybe it would be possible to sell Linux sticks made specifically for home-banking with Pre-installed Java?
Maybe, but would you trust an install designed for internet banking, supplied by some shady character?
Probably true.
But IMO there is a market for this. Its not something I would be doing (see above) but theres money in the idea. Not as much as the OP probably hopes, but still, there is money...Sure, it might cost a few more $$$ to get it via the OP than it would to go to the store, buy a flash drive, download an .iso, install it to the USB stick. But much less stuffing around. Even if only 0.01% of computer users would be interested in the idea and willing to pay the extra cost, thats a huge market.
You would be taking a risk on this idea, but here goes-
Order 100+ flash drives with a custom logo (from whatever OS you want to ship them with).
I know people that would probably pay a few extra dollars just for a screen or laser printed logo for thier favourite distro.
Send a few into the major linux magazines. Free coverage, and if your already online selling them (by whatever method) when the articles hit the shelf, you should do OK. I hope.
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