1. What is the possibility we could make ubusb.c32 run on CDShell? I was thinking, if we could get a single menuing system to run across both CD and USB, then we could have a unifiied release. Furthermore, if we could hide non-working entries on specific devices (eg. hide Windiag when UBCD boots from USB), that will make it even better.
I believe we could have ubusb.c32 running from a CD if we used isolinux instead of syslinux. One of the problems is that you would like an iso image for the CD version, while for the usb version, the iso image is not very useful. We could stick with the iso image, and make people copy the contents to the usb drive if they want. I believe UBCD could use the modified images instead of the current ones (the igz ones instead of iso ones, for example, and the updated freedos image), to improve compatibility with the usb version, and actually reduce some space.
Is there an easier way to initialize the USB drive?
Actually, if you put all the contents that you want in a subfolder of makebootfat called image, you can actually use
makebootfat -o usb -Z -Y -b ldlinux.bss -m mbr.bin -c ldlinux.sys image
to format, make bootable and copy all the desired contents to the usb drive in one step.