I first tried this about a year and a half ago, but got stuck. I eventually got Armory working with the Gentoo LiveDVD, but that wasn't as desirable an environment (IMHO) as the SystemRescueCD (also a Gentoo derivative). I gave it another shot over the past week, and I now have it working!
https://bitcointalksearch.org/topic/updated-bitcoin-systemrescuecd-410-portable-tools-andor-fpgaasic-miner-261318
With a big-enough flashstick (at least 32 GB at this point), you could put a copy of the blockchain on the stick, and keep your wallet in a TrueCrypt volume. Put all of these in a SystemRescueCD backing-store volume and it wouldn't be much different than a normal install.
Topic: Took another whack at Armory-on-SystemRescueCD, and now it works! (Read 560 times)
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