Inspired by your endorsement of Unetbootin I've given it a go and like it.
Unlike the built in Ubuntu utility it does not reformat but more important it
works on my 1GB USB stick whereas Ubuntu's own utility will not accept it, as it
is too small.

However now I have Ubuntu-live working on a USB stick, can I / how do I convert
this into a normal working copy of Ubuntu, so I can save files, remove / install
apps, force a login panel, encrypt home folder, etc & still have everything
there when I reboot?