This is an awesome text editor that is already portable and is smaller, yet has more features than most notepad-replacements.
http://www.xtort.net/office/floppyoffice.php
(Scroll down and download the small package of office software called "Floppy Office". Go into the collection after downloading and go to the folder called tnp451re_uni and grab only the TedNPad.exe file and stick that on your drive.)
The offical TED Notepad website is at: http://jsimlo.sk/notepad/
Personally, I prefer SciTE as a text editor.
Rob Loach [Website] [Projects]
How big is SciTE?
TED seems to have more features, but I don't know if it's smaller. TED is 128KB.
-Justin
It turns out that TED makes a slew of registry entries. I would recommend using kPad instead, it is smaller and does TXT and RTF.
link and instructions to get kPad:
http://www.xtort.net/office/floppyoffice.php
(Download the "Floppy Office" package of software and got to the folder called Kpad. Grab the Kpad.exe file and put it on your usb stick.)
-Justin
just create tednpad.ini in the app directory and all your setting will be stored in that file, instead of registry.
http://jsimlo.sk/notepad/manual/manual.php#Portable_INI_file