USB Ubuntu 8.04 Persistent install tutorial for current Windows users. This tutorial covers the process of installing Ubuntu Hardy Heron to a USB flash drive using the Live CD to create the partitions and a Windows host to perform the build. Ubuntu will uses the persistence feature to save and restore changes back to the flash drive. Hence your changes and settings can be saved and restored upon subsequent boots.
The persistence feature was broken with the release of Ubuntu 8.04 and this tutorial includes a fixed initrd.gz that addresses the permissions problem which was pointed out here
Prerequisites for creating a persistent USB Ubuntu 8.04:
Partitioning the USB flashdrive using the Live CD: