Hi all, I have spent the past two months trying to create a boot cd that will boot BT3 while still allowing BT3 to boot itself. I found this process extremely frustrating but now that I have it all sorted out I'd like to share what I did so no one will have to go through the same thing I did.

What you need...
a) A usb drive (obviously).
b) A Windows computer if you are more comfortable with Windows than Linux.
c) A cold drink.

1) Install BT3 to your flash drive.
I will not go over this. Pureh@te has an excellent tutorial on how to do that here.
HOWEVER, I made one change to this. Do not make two partitions on your usb drive. Leave you usb drive as one partition formatted as FAT32.

2.) Now we are going to make the actual boot disk. This step is very straight forward, download this .iso. and then burn it to a cd. Don't delete the .iso, we need it for the next step.

3.) Next we need to copy some files from the .iso you just downloaded into BT. This can be done from Windows if you are more comfortable with that but it can certainly be done in any flavour of Linux also.
a) Open the .iso with PowerISO or similar program.
b) In the boot directory, extract the files "initrd.gz" and "vmlinuz" to your hard drive.
c) Copy those to files to the "boot" directory of your usb drive. We are overwriting the ones that BT has there by default.
If you boot BT now, you may notice that some things don't work. Don't worry, we are going to fix that soon.

4.) From my experience, the method of saving changes made to your filesystem that BT uses, our new kernel doesn't like. BT uses a file called "slaxsave.dat" to save changes and we need to change that. So what we need to do is open up the "syslinux.cfg" file which can be found on your usb drive in "boot/syslinux/"
So open that file up and find the boot option that is "BT3 Graphics mode with Persistent Changes". In the APPEND line find the "changes=/changes/slaxsave.dat" and change that to "changes=/slax/".
What we just did here was make it so that the boot disk and the native boot are saving changes you make while using BT in the same place. Also, using the slaxsave.dat method is not the greatest idea in the world as can read about here. Make sure you select that boot option every time you boot. You can also move that entry to the top so that it will select that one by default whenever you are booting your system up.

5.) Okay, so now that that's all done we need to rename the name of the folder that BT3 is located in. This is because the slax-boot-usb-from-cd which this boot disk is largely based off of looks for a folder called "slax" which has our operating system in but BT3 is in a folder called "BT3". Open your usb drive and simply rename the "BT3" folder to "slax".

6.) As I mentioned above, some things aren't working right now. This is because we need to add some kernel modules to BT so that our new kernel will be happy. So what you need to do is...
a) Let BT boot itself
a) Download this .zip file.
b) Get the file into BT3 and unzip it. (hopefully that isn't a problem)
c) Now copy the extracted "modules" folder to "/lib/". (We are going to replace the one that is already there.)

That should do it. You should now have a shiny new boot disk that can boot BT3 and also allow BT3 to boot itself. May I recommend some business card cds?
Anywho, if you have an problems or questions post a reply and I will try my best to help you out. I am by no means a Linux expert. Also, I have not been using my own boot disk for all to long so there may be other unforeseen problems I have yet to encounter.

By the way, is disk or disc proper English?