Mac on a stick
I found a nice article about getting Mac OS 7 on a usb stick (link) . I tried this awhile back but It didn't work out because every time I tried step 5 ( "Unpack the System_7.0.1.smi.bin") I got errors. I finally got it and put it all together so you can download it and skip steps 1 to 5, or skip all the steps 1 to 10.