Tom, if you search the 2007 Forum Archives ( I used "flash drive" as the search subject) this post from Harv comes up:
QUOTE
In case you missed it (or care)...
Mac troubleshooter Ted Landau posted a Web page on his blog that describes how to make a boot drive from a 1GB (minimum) flash (or thumb) drive.
Repair/recovery applications can be added to make the flash drive an indispensable all-around troubleshooting/fixing tool.
The fairly simple steps are located Here.
And he includes links, which wouldn't translate with the copy and paste of his thread.
HTH,
Chris K