Running ReactOS from a USB stick

Reactos from an USB - Work in Progress

Step 1: Make a bootable USB stick with Puppylinux-Tahr with Grub4DOS
Step 2: Copy LiveCD to the USB stick
Step 3: Make changes in menu.lst
Step 4: Make changes in freeldr.ini

Result: I ended in kdb:>

Content of grub

title ReactOS
map (hd1) (hd0)
map (hd0) (hd1)
map --hook
find --set-root --ignore-floppies --ignore-cd /loader/freeldr.sys
makeactive
kernel /loader/freeldr.sys

Content of Freeldr.ini

[FREELOADER]
DefaultOS=ReactOS
Timeout=1
default=multi(0)disk(0)rdisk(1)partition(1)\reactos

...

[Operating Systems]
ReactOS="ReactOS"

[ReactOS]
BootType=Windows2003
SystemPath=multi(0)disk(0)rdisk(1)partition(1)\reactos
Options=/DEBUGPORT=SCREEN

Possible problems

USB is not properly working.

My machine

Celeron with 2 GB ram
USB connected - PS2 to USB adapter with DIN to PS2 adapter
USB connected - Mouse
USB connected - stick 8 GB Sandisk Slider