@distrofit,
If you create your LiveUSB from Applications > System Tools > Create a LiveUSB or from a terminal with tazusb and your stick is ext2 or ext3 formated, then the utility has configured your /boot/extlinux/extlinux.conf to have /home on the stick; ie:
LABEL core
MENU LABEL SliTaz core Live
KERNEL /boot/bzImage
append initrd=/boot/rootfs4.gz,/boot/rootfs3.gz,/boot/rootfs2.gz,/boot/rootfs1.gz rw root=/dev/null vga=normal autologin home=b3767b57-11bd-439e-9b98-bed14c2f3937
To avoid the system to freeze when you remove the stick, you can modify extlinux.conf
At boot when the orange screen displayed, select SliTaz core Live and hit the Tab key. With the backspace key, suppress the home=
uuidinstruction.
If you want this modification to be permanent, edit the extlinux.conf file of the stick (same modification or create a suplementary entry with no home instruction). You can also indicate the uuid of another device for home (ext formated!).
How many RAM do you have on your system? This can be a reason that sometimes the system hangs with the USB stick blinking.