reselling Ubuntu is perfectly legal under GPL license as discussed here - http://ubuntuforums.org/showthread.php?t=49649also this appears to package up and do the 'work' for you, to package it onto a USB key under windows - http://www.blogsdna.com/3002/create-ubuntu-bootable-usb-flash-drive-with-usbuntu-live-creator-for-windows.htm
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