I have spent much time searching your web site for instructions how I may achieve this, but have not found any so far.
You've come to the right place...
I have also used the command "dd if=debian-live-6.0.1-i386-gnome-desktop.img of=/dev/sdb1" to try to install on the USB. When trying to mount this after much activity had been completed, the system recognised that a USB device had been attached but couldn't recognise the device. I then looked at the device using Partition Editor, which classified the partition type as "Unknown" after this partition had been previously formatted using Partition Editor to FAT16 as per prior instructions.
If you want to test your image on real hardware after dd'ing it onto your usb flash drive, you have to reboot and then make sure your BIOS can boot from usb devices. To enter your BIOS you probably (depending on your model) have to press Esc or Del or F2... then check your settings.
You can alternatively use your .img using virtualization.
If for any reason your BIOS can't normally boot from usb (in case of old BIOS) you can find alternatives on the net. There are methods of booting old BIOS.
Please would you be so kind as to point me to the relevant instructions and what application I need to use to install the .img file under Lenny.
dd'ing the image as you did will do.
It may be an idea to possibly include these instructions at the relevant websites where these .img files are stored, so as to prevent people like me asking idiot questions like this for the future.
You have very useful information online on the live-manual. The link is:
I hope this information is useful for you.