We'll explain how to install CDlinux 0.9.2 and later onto a USB key without actually burning it.
First, you need to boot CDlinux. There are several ways to boot the CDlinux ISO image directly.
Perhaps the easiest way is to use a Virtual Machine appplication. For example, you can boot the CDlinux ISO image in VMware (just set OS type to general linux 2.6 kernel). Once CDlinux is started, plug your USB key in and assign it to the virtual machine. Then launch the CDlinux installation wizard and follow the instructions.
Don't have a virtual machine application? No problem. You can also boot the ISO image directly via GRUB4DOS, and then launch the installation wizard in CDlinux. Instructions on booting the ISO via GRUB4DOS can be found here: Can I boot from the CDlinux ISO Image directly?
Don't have GRUB4DOS? It's OK. You can still boot the ISO directly using your favorite boot loader. What you need is to copy the CDlinux kernel and initrd out. Boot them with your boot loader and the following kernel command line parameters:
CDL_DEV=xx CDL_DIR=yy CDL_IMG=zz.iso
where CDL_DEV is the device you've copied the CDlinux ISO on. CDL_DIR is the folder where you copied the ISO in. And CDL_IMG is the filename of the ISO image. More explanation can be found here: What's CDlinux' kernel command line parameters?
The kernel file is /CDlinux/bzImage in the ISO image, and the initrd file is /CDlinux/initrd. If you are using Windows, you can extract them from the ISO with WinRAR. If you are using Linux, “mount -o loop”, Midnight Commander, probe-fs (if you're already running an older version of CDlinux), all can do the trick.