There's a limit to the size of memory stick you can use if you're going to boot & run Linux using a FAT16 partition of 2048mb (2gb). But using this tutorial you can get around it.
Mind you looking at things Fedora 10 on a Live USB disk looks very do-able, especially with the Live USB Creator, may try that out first.
Will try this out when my 32GB stick arrives and post back with the results.