Dreamlinux makes more sense , it has recently released a new version 3.5 .. It provides you lots of potential self made utlis by DL staff.
It even provide you option of XFCE and Gnome... With kernel 2.6.28.5 you won't have problem with Hardware stuff..
Small :S ? Anyways no need to restrain your choice.. If you have Pen drive 2Gb or above get a full blown desktop like Ubuntu , Mandirva etc.. You can install it one Pen Drive using
Lubi, LVPM, UNetbootin, and Bubakup - UNetbootin
Please note that prolonged use of OS from USB drive can lead to malfunctioned USB drive, as using an OS from it substantially increase in read/write speed ..