I currently have Damnn Small Linux on my USB running fine. Im looking into switching to a distro with Network Security tools something im looking at now is Nubuntu, Phlak, or Backtrack. My question is, when i boot DSL from usb, i find it to be exactly like a Live CD, i figured since it is USB "Storage" i can use it and edit my desktop but everytime i reboot its back to how it was, now i know you can do changes by editing a file, but i wanted to see if it is possible to just be able to work it like a regular system, since it is from usb. If this is the case i rather run these os through cd, since its baisically the same.

Even though DSL is stored on a rewritable media like a USB flash drive, it is still just an initrd running from RAM. Changes you make won't be saved due to the nature of it's design, no matter what you are running it from.

Most live CDs will work like this, unless they have a specific option to save the configuration.

is it possible to embed a usb with the design a hard disk would use??

You could install a distribution of Linux directly onto a USB flash drive, but the problem there is that the constant reading and writing of the drive will destroy the flash chip fairly quickly. That is why "live" Linux distributions are designed the way they are.

Unless there are some distributions out there specifically designed for a read/write installation on a USB device (which there may be, though I do not know of any), you are probably out of luck. I could think of a few ways to modify an existing distribution like BackTrack to at least offer /home on a partition on the flash drive, but it still wouldn't be perfect.

k i got you, makes sense now, thank you very much i appreciate you answering my question