Tutorial Part 2 - Setting up a LiveUSB version of Tails, then an Encrypted Persistent Volume.
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You may want to print this text out on paper for easier reference.
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5 - You should now be presented with a log in prompt for a temporary session administration password - this is reset every time you load Tails, it is optional to enter this, it is used to allow current session access to system functions, if you get any errors about access rights try using an admin password at log in. Also at this point you can optionally select to use a Windows XP camo 'skin' to make Tails look more like XP if you're in a public place for example, this is also optional.
7 - Once Tails is up and running, insert the second USB drive. Click the 'Applications/Accessories' menu, then highlight 'Tails', then click 'Tails USB Installer'.
7a - Click the 1st option "Clone & Install"
7b - Select your target device from the drop-down menu (your second USB drive!)
7c - Click 'Next', then wait for it to finish (however long to copy about 1gb to a USB drive - usually a few minutes). This will install a new copy of Tails onto your second USB drive, this will be your new proper Tails USB.
8 - Shutdown this session of Tails with the Power Button up in the right-hand corner. Don't forget to take out the FIRST USB you created and BOOT INTO THE NEW SECOND TAILS USB! You can format the first USB drive later on, that copy of tails is no longer required.
9 - Log in to the new Tails USB, once logged in click the 'Applications' menu, then highlight the 'System Tools' sub-menu, then click on "Configure Persistent Volume". (The size of the persistent volume is automatically determined by how much left over space is on the USB drive after installing Tails in the previous steps.)
9a - Choose your pass-phrase for the persistent volume - you will need to enter this every time you login to Tails. The persistent volume is an encrypted partition protected by a pass-phrase. Once the persistent volume is created, you can choose to activate it or not each time you start Tails. It is a good place to store sensitive materials. When choosing your pass-phrase remember that short, easily guessed pass-phrases are very easily cracked - it would take one Intel I7 2600k CPU over 200,000,000 YEARS to brute-force crack an AES-256 encrypted 32 random character pass-phrase using lowercase, UPPERCASE, 0-9 & "$p3c|4!" characters
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9b - Click "Create" and wait for it to finish.
9c - On completion, a window will popup allowing you to select what Tails will save in the new persistent volume automatically, internet shortcuts, PGP keys, nudie pictures, application settings etc... I recommend selecting everything.
10 - Close and reboot with your modem plugged in and switched on, log back into Tails with your new persistent volume.
11 - Make sure your modem is plugged in and turned ON! Click the 'System' menu, then highlight the 'Preferences' submenu, then click on 'Network Connections'. Now, only YOU know what type of internet connection you pay for, I cannot help you with that! My personal internet connection was amazingly simple to setup (i was quite surprised by its pre-configured setups, it has many different countries options for local telcos pre-installed).
Another note - Tails is PRE-CONFIGURED to go through Tor! It is pre-installed with Vidalia and a Torified browser called 'IceWeasel'. It SHOULD automatically open up when connected to the internet. If not, Use the 'IceWeasel' browser menu shortcut to get onto the Road. Also, this operating system is NOT persistent for security measures, meaning that any changes you make (that are not saved in the persistent volume) will not be saved on restarting Tails! Example is Desktop Backgrounds and general GUI appearance settings (if you manage to get these settings saved and persistent, please let us know!)