It's probably easier than trying to get it on a 2GB drive. Is that a light version you're using?
I use Gparted to prepare the ext2 and swap partitions, but just run the install normally after that. When you get to the install select manual for the partitions and don't format them. You have to make sure the ext2 partition is selected to mount as root ("/") and that grub is installed.
I followed some instructions to do this first time, (some guy here had a link to the instructions in his sig - can't remember his name) and it worked first time and every time for me. 10.04 and 10.10 on 4GB drives, and 11.04 alpha on an 8 GB.
Whereabouts are you? (rude question!) Over on this side of the big pond the supermarkets are now selling 4GB USB sticks and SD cards for about $12. Some of the stationery chain stores (office works) are selling branded 8GB memory sticks for under $20.
About six or seven years ago I bought my first 1 GB for my digital camera and payed $120 grey market. That was cheap - the street price was about $200 at the time. Times change.
Chris
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