I have recently set up a Live USB version of Ubuntu 10.10 on a 2 Gb SanDisk card.
I used the PenDrive program to make the LiveUSB directly from the Ubuntu iso.

The result provides a remarkably clean and efficient Linux Desktop,
which compares quite favorably with my Knoppix 6.4.3 Live USB.

The quirky LXDE & PCManFM imperfections which plague Knoppix 6.2 and 6.4 are happily absent.
Ubuntu 10.10, 32-bit has a few worrisome (installation) edges, but not many.

Unfortunately, I haven't found Ubuntu forums as friendly or as useful as knoppix.net.
I just got (in mid Jan 2010) a Launchpad query about a Ubuntu bug I posted there in May 2010.