This is where the vertical markets come in to play and by realizing that CyberKey is not just selling USB keys. This is a virgin and wide open market of sales options that are available. Now that you are thinking out of the box, there may be hope for you!
I've done this myself with a generic 256MB key made by some taiwan company...
Rightooooo what did you boot up on a 256M USB device DOS and Windows 3.1?
Here's What You Need to Use Windows XP Professional
•PC with 300 megahertz or higher processor clock speed recommended; 233 MHz minimum required (single or dual processor system);* Intel Pentium/Celeron family, or AMD K6/Athlon/Duron family, or compatible processor recommended •128 megabytes (MB) of RAM or higher recommended (64 MB minimum supported; may limit performance and some features) •1.5 gigabytes (GB) of available hard disk space* •Super VGA (800 x 600) or higher-resolution video adapter and monitor •CD-ROM or DVD drive •Keyboard and Microsoft Mouse or compatible pointing device
Your post reminds me of the days when Microsoft said Windows 95 could run on a 386\40 machine with 32 meg. of Ram.
Bud what you described can't be done on anything lessor!