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Possible Duplicates:
Can I boot and run windows XP from a USB flash memory stick?
How to run windows 7 from a USB thumb drive

I want to run an application dealing with sensitive information (bank account data) on a not entirely trustworthy computer.

My idea now was to create a Live Windows on a USB drive with just this one application installed. The Windows installation itself can (and maybe should) be read-only, but some data needs to be saved on either this USB drive or a second one. Access to the internet is also required, but it would be nice if I could restrict it to a certain address.

I would prefer a Windows 7 version, just because of the better driver support.

What would also be nice is encryption of the USB drive (e.g. using Truecrypt).

I've never used a Windows Live CD, so is it possible to do all that? What is the easiest way to create a Live Windows on a USB drive and to preinstall my application?

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Possible for XP: possible duplicate of Can I boot and run windows XP from a USB flash memory stick? –  Nifle Oct 10 '10 at 8:11
    
Win7 seems hard/impossible: how-to-run-windows-7-from-a-usb-thumb-drive –  Nifle Oct 10 '10 at 8:12
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marked as duplicate by Nifle, Diago Oct 10 '10 at 8:36

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