UNetbootin - Universal Netboot Installer
UNetbootin allows you to install various Linux / BSD distributions on a hard disk partition or flash drive. As well as creating boot images Parted Magic, Super Grub Disk, Backtrack, NTPasswd, Smart Boot Manager (SBM), FreeDOS, and others
download for windows
download for linux
unetbootin.sourceforge.net
www.teamteabag.com/2008/08/13/ howto-linux-from-usb-the-easy-way-with-unetbootin