USB booting :: Ambitious Newbie

Hello,
First, I think DSL is great! I have just finished looking over the site.
I would like to get instructions on how to install to a 128 USB drive. I have greater goals but I will settle for this.
I have downloaded the zip file and it contained several .bin files .exe's, and the iso.
Is all I have to do I dd the iso to the usb drive after I format it?

Secondary question,what is the difference between installing DSL to a USB drive and have it embedded in the drive?

original here.