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Is it possible to install Ubuntu 11.10 onto a DVD as a full working version, which treats the DVD as the hard drive (like you can with a USB)?

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You can not install ubuntu in a dvd like a USB storage device. But there is an alternative. You can make a live dvd from your harddisk ubuntu installation. Unlike USB, you can not store files after working in the dvd. You have to store files in your hard drive.

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