Sugar Labs have released v.2 "Blueberry" of their Sugar on a Stick virtualized OS, intended for deployment in education settings. Originally released in public beta back in April, the platform was originally developed for the OLPC XO-1 notebook but subsequently spun out for any Windows, Mac or Linux computer.
In comparison to the previous version, Sugar on a Stick v.2 Blueberry cleans up the OS' navigation, improves networking support, streamlines Activities updates and boosts Gnash and Flash support. Sugar Labs have also loaded in some new applications, alongside the existing apps for text-to-speech and other functionality.
Any 1GB flash drive can be used, with Sugar on a Stick running directly from that drive rather than requiring installation. Meanwhile there's a new site - RecycleUSB - that allows people to donate their unwanted USB drives to be repurposed into "portable learning centers" for 5-12 year olds.
Update: NewGadgets.de were on hand this morning to catch the official launch of v.2 Blueberry on video: