Thank you so much for offering this to us. I'm a newbie and I am so confused. I want anonymity in my transactions. Will this help in any way?
Not really unless you're concerned about your computer being monitored/infected and someone knowing that your wallet is attached to you. This is to make sure that your money is safe from being stolen if your computer is compromised.
Would like to see this on either a USB stick or separate partition.
This would kind of defeat the purpose since your computer could access the partition and an attacker could infect it that way. Same goes with a flash drive, the distro would be editable and could be infected. The only way to be 100% secure would be to boot it on a machine that will never touch the internet from that point on. Even if you're booting from a live CD the files you download could be infected and mount your main system disk in the background and relay information once you boot back into your normal OS. A bit paranoid, but 100% secure should really mean 100% secure.