For creating live USB that has the least amount of compatibility issues, if any?
- Lenovo IdeaPad S10 4333-36U Netbook
- Intel Atom N270 1.6GHz
- 1GB DDR2
- 160GB HDD
- 10.1" WSVGA
- Windows XP Home
I would advise lubuntu, as I have that on a machine with similar specs. I is, however a bit lacking in features (I use it for basic internet browsing, experimenting as I don't care if I have to reinstall that one, and as an electronic photo frame).
If it is you main one, or will be used a lot, xubuntu may be better for you, as it has a lot more of the ubuntu features, while being lightweight, and it actually runs on my 1998 machine with 512 MB of Memory!
You might get away with Ubuntu itself, however it would possibly be too intensive, especially Unity. You could always install a second desktop, so you still have all the Ubuntu features.