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I consider to create a bootable pendrive with Ubuntu 12.04 LTS. I wonder if all changes that will be made are persistent? If I install an application, will it be also available after OS reboot? Will my files stay intact?

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Your files and programs will remain intact after reboot as long as you choose "Stored in reserved extra space" bellow "When starting from this disk, documents and settings will be:" on startup disk creator.

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Thank you for you reply. :) – Grzegorz K Aug 21 '12 at 19:36

If you install Ubuntu to the flash drive (as if it was a normal hard drive), any changes you make to the installed Ubuntu and files are indeed persistent. It is exactly like a normal Ubuntu installation, except that it is highly portable.

If you turn your flash drive into a bootable Ubuntu installer (called a Live USB), then the flash drive is just like a Live CD. All changes made during the Live session are lost upon reboot, unless you enabled persistence when you created the Live USB. This would effectively make "customisations such as keyboard layout, numlock, preferences, additional packages" survive reboots. (Source)

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Live USB supports persistence. – Eric Carvalho Aug 21 '12 at 19:25
Noted.. Thanks! – SirCharlo Aug 21 '12 at 19:34
I installed ubuntu on USB (using Live CD) and it wont boot. I am sure that grub was also installed on mem stick. Tried both methods: GRUB on SDB (memstick) and on SDB1 (first partition with mountpoint "/"). Now, I am very confused :( In my opinion it should works well. – Grzegorz K Aug 22 '12 at 5:35
Ah! That's a different issue. I would recommend you start a new question with this problem. – SirCharlo Aug 22 '12 at 10:52

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