LiveDroid

LiveDroid is not the first Android live-spin project, but it's the first one I've tried out. You can check out the Japanese project page at http://livedroid.sourceforge.jp/ , or directly download the iso from http://is.gd/1lVQs . All you need to do is burn the iso file to a DVD and boot 'er up! Leave a comment with your configuration and results if you want to help the project.

I've never heard of a live disc causing damage, but live at your own risk.