If using from Windows, download UNetbootin program to Windows machine, install it, then start program. Plug in your target USB stick ahead of time, and make sure it is mounted (in Linux) before you start UNetbootin program. To make live LL USB, download the LL ISO file to your computer first. Let us know if you have any problems or further questions. If doing it from a Linux Lite computer, just open a terminal and enter this command to install it: If you're planning to make live USB from a Windows machine, download UNetbootin program from their site. If doing a full installation to the USB stick (as you would to a hard drive), then 8GB would be minimum but that would leave very little room for expansion. (There are ways around that limit, but won't get into that.) If want a live USB with max of 4GB persistence, just add total size of ISO file plus 4GB for persistence file to get minimum size of USB necessary.
The standard max size for a persistence file (if desired) is 4GB. Basically when making a live USB use the size of the ISO file as a guide for how big it needs to be. However, I don't think 1GB USB's are even sold anymore so any USB sold these days will work. You'd even have room for a small persistence file on 1GB USB. If making a 'live' USB with UNetbootin or similar, 1GB will work because the LL 2.0 ISO file is only 700MB.