There is a working liveCD running moodle. The content of this cd (moodle system) can be easily customized using windows or linux. If you like to join in our running beta-test you are welcome to email me for further details.
maik.riecken[at]gmx.de
Features:
* kernel 2.6.11
* moodle 1.5.2+ pre-installed including book/hotpot module
* acrobat reader, koffice, xine, xmms (for showing up/playing resources)
* mozilla firefox
* icewm (kde/gnome are difficult due to performance issues)
* based on knoppix / some ideas of lamppix
* english / german version available
* image size about 400megs => space for 300megs own content
It is not free, but you don't have to pay money. You just will have to give feedback about this development instead of payment - otherwise I would not be able to leave the beta-status

Don't expect a full-featured desktop-system supporting any kind of printer, automounting usb devices e.g. It is a live-system running moodle which can be modified without a full remaster. It should give you the ability to present your courses offline or just to demontrate moodle-features somewhere having no internet access. Customizesation is done by multisession (like lamppix) - quite easy.
Most things will going on using RAM - this is what you really need, if you are adding megs of own content.
Maik (from germany)
PS: The livecd is in beta-status...