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#180
It does work because VMware shields you from the hardware specifics - try it you'll like it. And it can be done with any OS, not only Linux. I have a portable Win8 too. I do, however, recommend an external SSD - much more fun than a spinner.
Btw: My 60GB SSD cost $59.95 and my 32GB high speed USB3 stick cost $65 and was so slow that I gave up on it.
Portable OS - Carry your OS on an External Drive
But if you want a portable Linux on a flash drive, I use a different approach. That works even with a USB2 stick - not super fast but acceptable. And it can come in handy.
Emergency Kit - save your files from a dead OS