Install Android-x86 on USB drive I am live booting the Asus laptop version of Android-x86 4.0 on my Acer Laptop from my USB Pendrive. Everything is working fine, however I want to install the OS on the USB drive instead of live booting it. The USB drive is 16GB in size.

I want to live boot the system and then install on the same drive without using any other drives. If possible, later on, I would want to mount some part of the USB drive as the SD Card. How can I do this?
The solution is pretty simple, far more easier than I anticipated:


Partition your USB drive/SDCard, into two partitions, using this EaseUS Partition Master, which is what I used. 
Partition layout needs to be one with 1GB of space with FAT32 filesystem, that is for the installer.
Remaining partition of type ext3 (Linux partition).


The installer, when live-booting from the USB Drive/SDCard, will show the just-created partition on the USB/SDCard, just select that partition to install on it and its done.