While I am able to use dummy.sys on the Windows XP on hard disk, I haven't had much success in using it with LiveXP, especially the RAM based one, as a reboot is necessary and the LiveXP doesn't remember anything from the previous boot.
I have finally been able to get LiveXP to recognise the USB stick as a hard disk (when connected while booting) using the dummy.sys filter driver. I have done this by modifying the USBSupport (Drivers\4 Storage) script from Radoi Ovidiu. We can also possibly make this a separate script with a dependency on the USBSupport script.
I thought I will share it with everyone, as I have not noticed much discussion on integrating dummy.sys into livexp. I can share the modified USBSupport script, if it is of interest - though the script needs some polishing (interface), before it can be shared . Also, I need to figure out a way to make it easy for the user to download dummy.sys (which I am not including in the script - as jaclaz would agree). I am a noob as far as winbuilder scripting is concerned.
Thanks to all, again.
Update: Latest version is available for download within Winbuilder (LiveXP project).
Renamed the file by adding a v in front, to prevent execution order issues, as this should run 'after' USBSupport.script.
Changed the dependency because of change in the name of USBSupport.script. Script file renamed to vUSBDummyDisk.script.
With further change in RemovableDevicesCombo (old USBSupport), new version is needed.
Clarification in view of some confusion:
This script is to enable (LiveXP or nativex or whatever) seeing multi-partitioned USB sticks as hard disks with all the partitions, not to make multi-partitioned USB stick; though you can use a LiveXP built with this script to make 'other' multi-partitioned USB sticks. Also, the livexp itself might be installed on the second or later partition and the USB stick the livexp is installed on has all partitions visible when the livexp boots. It works for all brands - no need to modify for each vendor.
Latest version (7) of the script is attached here: