Its pretty damn cool! Just make sure if you try it, do *not* use a swap partition on the flash drive. It can severely shorten the life of your drive.
Anyhoo, get the ISO here:
http://www.us.debian.org/devel/debian-installer/
Your flash drive is usually detected as /dev/sda
Be careful though because most RAID hard drives are also detected as /dev/sda so your flash drive might be /dev/sdb
After doing the system install, install GRUB to /dev/sda. Voila =)
Don't blame me if something goes wrong
PS: On second thought a 2GB would probably be worth the extra money for this. But I do have a fully functioning fluxbox/X setup with g++ and such in about 600MB



