On Tue, Aug 30, 2011 at 13:33:06 -0700,
  Jeremiah Summers <jmiah...@gmail.com> wrote:
> 
> Yes Literally I did, but as Adam just pointed out running Live just
> dumps the squashfs image to the drive and slaps grud on it. I'm not

It actually dumps the ext4 image on the drive and then resizes it to
fit the available space. The ext4 image is stored compressed inside
of a squashfs file system on the live image.

It would be nice to get rid of the embedded ext4 image now that squashfs
supports special files and extended attributes (needed for selinuix labels),
but there are some other roadblocks that will block that change for the near
future.
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