(Saw this info on the Octagon site and clarified the steps to make them easier to understand. Tried it and it worked with both the HDMU and PKTeam images that I have.)

How to Make a Bootable E2 USB Stick With ONLY ONE Stick and NO Hard Drive:

1. Put a Blank USB Stick in Front USB Port and Start TGZ-USB-Installer plug-in.
2. Do Step 2 in the plug-in to Unmount the USB Stick.
3. Do Step 3 in the plug-in to Partition the USB Stick.
4. Exit the plug-in.
5. Remove the USB Stick from receiver and plug into your PC.
6. Copy the "filename.tar.gz" E2 file to the VFAT partition of the USB Stick.
7. Remove USB Stick from PC, insert into Receiver and wait until you see onscreen that it has mounted.
8. Start TGZ-USB-Installer plug-in and Do Step 4.
9. Do Step 5 and reboot.

If E2 boots up, Congratulations, you have success!