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I'm thinking of ways to get around the high cost of hard drives lately. I was thinking an optical jukebox would be interesting (though more expensive than just buying a hard drive), then thought I've heard of OS's run from DVD so why not boot from a Blu-ray drive.

I think a smaller OS like a Linux flavor would work. I'd like to know if there's a way I could burn Windows 7 to DVD for this use. Just curious. Anyone know if this is possible?

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There's Linux Live CDs everywhere. Windows... isn't as easy: superuser.com/questions/324050/… –  Bob Jun 7 '12 at 16:47
    
For linux, running a live CD is easy. However, you might still need a place to store data, and this would preferably be either a HDD/SSD or a USB drive. You could also install Linux on a USB drive and store everything there. –  user49740 Jun 7 '12 at 16:49
    
For windows, there is BartPE (nu2.nu/pebuilder), but it does not work on Modern versions (2000/XP/2003 only). Then there is the official Microsoft WinPE, which is now freely available in this kit: technet.microsoft.com/en-us/library/dd349343%28WS.10%29.aspx - This will work with all modern versions of Windows. –  MaQleod Jun 7 '12 at 18:29
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You can easily run a Linux Live-CD like Ubuntu, though it will suffer a performance hit: running from an USB drive is much faster. (do the check by yourself: boot a live-CD and then boot Linux from an USB drive).

As for Windows, it has been discussed here: Is there a way to run Windows without installing it?. Also, check How to Create a Windows 7 Live CD the Easy Way.

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It would be good to give the link for Live-CD. :) –  avirk Jun 7 '12 at 17:57
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I run several laptops off LiveCDs or LiveDVDs all the time and haven't had any issue. The downside is when you need to update packages (if you require the latest features and security each time you reboot since they are only held in volatile storage i.e. RAM (although I hear that non-volatile RAM is on the rise and offers the same benefits of running applications in memory). The other downside is the storage of data you consider essential for example perhaps emails, documents, etc. You can certainly store these in external media such as hard drives, flash drives, etc.

There are plenty of guides that help you create Windows 7 LiveCDs. A one that I have referred to in the past is http://www.vikitech.com/8098/create-windows-7-live-cd.

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