I came across a great project by the UK Honeynet Project.  For those who have not heard of  ‘honeynets’ yet, to put it simply they are

small, often virtual networks which are created purely for the purpose of diverting

attention from real networks and learning about techniques/exploits in the process.  A prime concern is making sure that once an

intruder has penetrated your honeynet, they are not able to get back out and

use your resources for activities such as denial of service and spamming.  The Honeynet

Project provides Honeywall,

this suite of tools provide a solid basis for any honeynet project.  Getting back to the point, I found an

interesting guide which describes the creation of a fully operational honeynet

on a 2GB USB key!  Here’s the link, I’m working on one at

the moment!