Microsoft StartKey - Windows Desktop on a USB Drive
Microsoft StartKey will put your entire Windows desktop on a USB Flash drive including the software programs, files and settings.
You can then plug this USB stick into any PC and use it as if it were your own personal workstation.
Related: Carry Your Windows Computer on a USB Drive
While this is not a new concept and existing applications like MojoPac do offer similar functionality, Microsoft Startkey will definitely help in popularizing this whole idea of converting a portable storage device into a computer, especially among the non-techie crowd.
The first public beta of StartKey is expected later this year. For more on Windows Startkey, check out ZDNet.

cool. various linux flavors have been doing this for years. it’s good to see windows go this way too. thanks for the tip & link!
I am still curious how it (mojopac) manages to do that. Windows is so bloated and takes gigs of space on HDD so how does it manage to put everything in couple of GBs and still run the applications like Photoshop and so on. I gotta give a try