Installing Mac OS X on a Flash Drive

Nearly everybody today uses various kinds of flash storage: USB dongles, memory cards, compact external hard drives. These products are rather affordable, and flash media reached 4-8 GB capacitites long ago. So why not install a fully-featured (but lite) version of Mac OS X on such a drive with a minimal set of applications and files? Many Mac users would like this idea, especially those who often work on different computers and want to do that in their personal environments. So, let's see how you can install Mac OS X this way.