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I am working on gathering content for a porteus line of posts. Porteus is a portable usb based distribution that also works off of hard drives. It is based upon Slackware and runs in a modular manner. It is easy to migrate a Porteus system from one partition to another, or even to another computer completely.
Installation is easily done from linux or windows. You can even run it from your current windows installation. It’s small, coming in at under 300 megs including 2 desktop environments. XFCE + LXDE or KDE 4.8.4 + LXDE. It comes in light and has the capability of great customization.
You can find more information about Porteus here: http://www.porteus.org