Few more questions.
1. Instructions or links to instructions on setting this up.(Do I just put in onto a USB and have the PC boot from USB?)
2. Does the amount of memory on the USB effect the speed of the OS.
3. If you plugged a bunch of these into a computer lab at a College or something and had them all Mining. Would this be a red flag for System Admins or anyone that might be watching the system?
1 - just forum search "linuxcoin" and you will find lots of help (your have to hunt around a bit to piece it all together though).
2 - no, but you need at least 2GB, and don't forget to make it persistent.
3- the usb sticks might be a tip-off. Also, you must be thinking of CPU mining, and I'm not sure linuxcoin is set up for that (haven't looked into it). You are probably asking whether the mining activity would be a red flag on the network, and I'm not sure about that, but I know there are others who have mined with a bank of campus computers. But since you are thinking of running a different OS on each computer, that might be pretty obvious.