Good to know that the information was usefull.
Another alternative I forgot to mention is Moodle-LiveCDs. You must be aware of the cottage industry Klaus Knopper  has started, the KNOPPIX boom . There you get Linux installed on a CD. Insert it to any recent PC (here it means newer than say 5 years) and you have a running Linux, without touching your harddisk!
There are modified versions availabe from others with all sorts of goodies added, including Moodle .
The disadvantages are a) slower due to the latency of the CD drive b) no permananet storage.
AFAIK the second problem is solved using an external USB-Stick. Check with the developers of .