DKVM - Desktop KVM
DKVM is a minimal KVM hypervisor running from RAM. The idea behind DKVM is to re-use the already well-known components on GNU/Linux systems to do network, storage and virtualization - and then run everything else inside a VM. The scripts are for my personal use - so some adjustment is needed if you want to build this yourself.
To build, simply edit "setup.sh" and follow the instructions.
When done, dd the "usbdisk.img" file to a USB disk or similar.
My blog explains a little more about the process behind DKVM: GlemSom Tech