Download Ubuntu Hardy Heron iso

Download unetbootin-linux-216.zip (find the newest version here: http://unetbootin.sourceforge.net/

Format your usb pen with fat32.

Make LiveUSB with unetbootin (just unpack unetbootin-linux-216.zip and execute unetbootin as root).

sudo mount -o loop -t squashfs /media/disk/casper/filesystem.squashfs /home/tdd/No-rsync-stuff/usb
sudo mkdir /tmp/ubuntu_usb_image
sudo cp -aR /home/tdd/No-rsync-stuff/usb/* /tmp/ubuntu_usb_image/
sudo mount -t proc none /tmp/ubuntu_usb_image/proc
sudo mount -o bind /dev /tmp/ubuntu_usb_image/dev
sudo chroot /tmp/ubuntu_usb_image /bin/bash

Inside chroot edit /etc/apt/sources.list to enable the repositories you need and insert a dns server into /etc/resolv.conf. If you don't do this you can't download anything through apt-get.

To choose a different keyboard layout:

apt-get install console-data
dpkg-reconfigure console-data

Make you apt-get install's and configurations…..

Start rebuilding the LiveUSB:

cd /tmp
sudo umount /tmp/ubuntu_usb_image/proc
sudo mksquashfs ubuntu_usb_image ubuntu_usb.squashfs -no-sparse
sudo cp ubuntu_usb.squashfs /media/disk/casper/filesystem.squashfs