I spent many hours thinking along the same lines. There are DOC "Flash Drives" that you can get up to 6G that are pure silicon. XP needs over a gig to install, plus all the auxilliary proggys that you need. NinjaMonkey managed to cut down our requirement for HD space with his version of D3. I was thinking of a DOC for the boot and proggy with a portable 2.5in HD USB device for all the files, mp3, divx, DVD.