An anonymous reader writes "OSWeekly.com's Matt Hartley has discovered a real, working version of Windows XP Thumb Edition. He comments: "While a proof-of-concept has been perpetuated without Microsoft's content, the instructions are fuzzy, and trying to install this would certainly be a clear violation of existing US law, but my sources have indicated this to be the real deal — you can install Windows XP onto a USB drive as described above.
Why hasn't Microsoft bothered to create such a thing themselves? It could be the belief that they do not see the cost/benefit value for offering a bootable USB OS despite the immense success of such a thing with Linux."
Link to Original Source