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Simply put, one will require local resources like your harddrive to do a full install kubuntu, whereas using a live distro with a usb to save information should not require any HD space. I personally don't like using live CDs because they are so slow, but I do use a USB based Ubuntu created with Remastersys which is very snappy.
You may want to take a peek at Portable Linux. Google "Portable Linux rudd-o.com" without the quotes. The first hit is what you want (apparently the mods don't want me to post hyperlinks so now you have to google stuff).
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