How to install and use Damn Small Linux?

I have got the .iso file of Damn Small Linux-N. I am currently using Windows XP and want to try it out. How should I go about using DSL-N from here I have no idea. Please explain in simple steps. I’ve heard that it runs from a pen-drive but how? Web search has been of no use as I am very very new to Linux. What is a Live CD and how to create it???

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