I copied a debian live usb image (debian-live-lenny-i386-standard.img [93Mb]) onto a 2gb thumb drive (sandisk).
I have 2 partitions:-
sda1 fat32 1gb -- for data
sda2 fat32 1gb -- debian live lenny

It boots up fine and already installed apps like ed, nano, aptitude run fine.
I created some directories and installed some packages, but when i shutdown and boot again from the usb drive, no changes are saved, ie user created folders and installed apps are not there.

I wish my usb drive to behave just like a hard disk install. Is persistence what I am looking for?

The image i downloaded is a minimal version, and since I am bandwidth constrained, I wanted to add applications to it over a period of time.
Please help.