Download > Burn > Boot a SliTaz ISO image. Open Terminal > type in (change /dev/sda if needed):

$ su root
# tazusb format

Enter a name such as /dev/sda1 or type 'list'… wait …

# tazusb gen-liveusb /dev/sda1

Wait…. and then reboot!

A SliTaz Live USB installation or a Frugal Install can be performed using:

• either TazUSB for Windows,
• or the famous UNetbootin.

The binary file TazUSB.exe is a windows executable that installs an iso file on a USB drive. Here is a step-by-step procedure tested with Windows_XP and a 2GB Sony USB drive.

• download the slitaz iso file you would like to install on your USB drive from: http://mirror.slitaz.org/iso/
• download TazUSB executable for Windows: tazusb.exe (the sources are available here tazusb.nsi)
• plug in your USB drive and format it in FAT32 (formatting might not be required),
• launch TazUSB application by double-clicking on TazUSB.exe executable file,
• choose the language,
• select the destination USB drive (double-check that the letter refers to the correct drive),
• select the Slitaz iso file you freshly downloaded,
• and that's it.

• standard version (Windows | Linux) : select SliTaz ISO from the Distribution list in unetbootin, or
• custom SliTaz version (Windows | Linux).

To create a Live USB, select “USB Drive” under installation type.

You can also choose to do frugal install. To perform a Frugal Install, select “Hard Disk” under installation type.

In Slitaz 4.0 the rootfs file is divided into 4 parts which is a problem in UNetbootin. For Slitaz to work with Unetbootin you must download the core flavor of SliTaz consisting of a single file rootfs.

http://oldpapyrus.wordpress.com/tag/how-to-install-slitaz-4-0-on-usb/