Life Hacker Posted a pretty good article about the Top 5 Live CDs and you should definitely check it out if you work on computers for a living, or just like tinkering with technology.
Basically, a Live CD is a CD (obviously) with a full operation user environment on it. So rather than booting into Windows (or what ever other Operating System you use) you pop the CD in, and the computer boots to that.
The uses for them are pretty much limitless as they can be customized to do pretty much any computer task you want. I use them for Hardware troubleshooting, Virus clean up, general testing, anonymous computer usage, and many many other things. Check out the article on Life Hacker, and check back soon. I have a post in the works about how to be be anonymous on a computer.
Photo by bulinna.
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