Here is a how-to making an ubuntu Live CD run from a USB drive:
http://edoceo.com/liber/ubuntu-live-usbWith slight changes this should work for every other CD. No matter if it is a Live CD or an install-only CD/DVD.
I would recommend to try Xfld 0.3 since it is the fastest usable Linux-Distribution that I know (DSL is by far faster but too limited). At least it is on my very old desktop PC which has similar specs like your Stylistic.
Most likely it will not recognise the touchscreen. Therefore I would temporarilly change the sources of the repository (
/etc/apt/sources.list) to match Ubuntu 8.04 and try to install the touchpad driver.
I will test this procedure next week if you like but I can't tell you for sure if it works since I have no touchscreen.
I also read something about making Debian 2.0 work on the Stylistic LT-P600 but it seemed to be hard and I can't remember the source.
Maybe Debian 3.1 could be an alternative.