fwiw, I've spent the last couple of days playing around with tc linux and trying to get it to boot from a 2gb pendrive. I used unetbootin at first, but it failed to boot too many times so I went with
http://tinycorelinux.com/install.html route instead with my 2gb pendrive acting as the "hard drive".
the two head scratchers I had to overcome to get a bootable usb with tc linux using those instructions:
1. How to mount the live cd from within tc linux (answer after reading the forum: cat /etc/fstab [where is the d* cdrom drive? oh, hda]; mount /dev/hda)
2. Trying to figure out what the right grub incantation was for "sdb1". I gave up and borrowed from
http://lists.us.dell.com/pipermail/linux-poweredge/2003-July/008898.html (answer: set sdb as the root device: "Grub>device (hd0) /dev/sdb", then follow the rest of the grub installation instructions in
http://tinycorelinux.com/install.html.
next was TCE persistence. key to this one was the kernel line "waitusb=5 tce=sdb1/tce" and "pause" was a useful debugging tool too. home persistence was easy with adding "home=sdb1".
Thanks for TinyCore, it's very cool!