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05 Nov 2011  

Windows 7 Professional SP1 32-bit

That's exactly what the WinPE 2.0 (Vista) and 3.0 (Windows 7) environments are for, which you can download for free as Windows Automated Installation Kit or WAIK.

Alas, it's not a full Windows and lacks several OS components which means software can't simply be installed on has to be made for the WinPE .wim image and be integrated into the .wim before creating a bootable .iso or USB stick from it.

I would actually love to "clone" my desktop Windows system to an USB stick and be able to boot that clone on its day I might try this just for kicks. The thing of course would be that it would only work on my specific desktop machine...WinPE is designed to run on anything.
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