Linux Live scripts 

http://www.linux-live.org/

Linux Live scripts version 6 are the most innovative scripts available. AuFS provides better stability compared to old unionfs, squashfs with LZMA support provides great compression ratio and amazing decompression speed. What's new compared to old Linux Live scripts v 5?

If you're just looking for a working Linux Live system, visit http://www.slax.org

How to build a Live distro 

  1. Install your favourite distro to disk partition, or into a folder on your existing system. Slackware is recommended but not required.
  2. Build aufs kernel module and squashfs kernel module (optionally patched to support LZMA) Make sure you are running the same kernel you used to compile modules
  3. Remove all unnecessary files (for example man pages and all other files you don't need), to make your Live Linux system as small as possible (this step is optional).
  4. Download Linux Live scripts from this website and unpack it in /tmp Read ./DOC/requirements.txt to find out what linux-live scripts need Edit .config file if you need to modify some variables
  5. Finally login as root and run ./build

    Live distribution's 'directory tree' will be created in /tmp/live_data_1234
    where 1234 is a random number
  6. To make ISO image, run make_iso.sh To make a bootable (usb) disk, run bootinst.sh