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of RAM, yeah, a LiveCD would be a very neat solution. Though CD drives are prone to failure far more so than hard drives.
Now maybe a live flash drive... Make a few copies of the drive and it could run for years and years.
Of course, if hard drives were made with the same quality as they were 15 years ago, this wouldn't be as much of a problem. I still have some 1 gig drives that are working perfectly.