Great questions. I'm working on building a rig as well (components are being shipped!) and found the guides here
http://www.coinminingrigs.com to be helpful. A number of the components are hard to find at reasonable prices presently.
Linux OS from thumb drive would work just fine
I've seen warnings to stay away from the XFX, HIS, and Powercolor brands but the others (MSI, Gigabyte, Sapphire) seem to be acceptable.
The PSU will depend on what GPU you end up going with, and how many. Use a chart like this one
https://docs.google.com/spreadsheet/lv?key=0AlhSF602y9DSdHRneWVZcjJLWmhjaVBMTHVCR3l4eHc&toomany=true to determine the total Watts needed for your card(s) and then select the appropriate PSU.
I'm also up in the air on which pool or type of pool. With many of the alt coins being more lucrative than litecoin presently in addition to the very dynamic nature of these markets, I'm personally leaning toward a multipool like [Suspicious link removed]. You can check out recent profits here [Suspicious link removed]/profits.html[/url]