Snapshot to compressed bootable image?

[rockdoctor]

I've got a customized 2340 MB Fedora LXDE installation sitting on one partition of my hard drive that I'd like to be able to run off a 1GB bootable USB flash drive. I've created a 703 MB squashfs image of this installation. Is it possible to create a bootable flash drive that will boot this image? If so, any pointers on how to proceed?

Installing revisor (and its dependencies) is not an option. I know I could just copy the installation to the spare 4GB flash drive sitting right next to my keyboard, install grub on the flash drive, and be on my merry way, but that wouldn't be much of a challenge.