| Yes, it is very possible.
As Linux sees a usb disk as a 'generic disk', it can be partitioned to accommodate both distros. 2 x 1gb partitions would work.
The only real issue would be installing a bootloader. I highly suggest Grub for the job. I haven't installed a full linux distro to a flash drive before (I have installed DSl to one though), but I know that grub will work, provided you are booting off usb.
I hope this somewhat helped,
weed
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