I can't help as I'm not experienced with ubuntu yet, but I offer a thought for 
a new user perspective:
I would think this bug would be important to fix (regarding Bug #1)

I imagine many new users of ubuntu will try out the LiveCD/USB while deciding 
whether to switch.
I did, this was my first experience with ubuntu and I almost gave up because it 
just seemed broken
(luckily I found this page so I realised it was a bug, and not something I was 
doing).

I've dropped back to Edgy for now :( But I look forward to a feisty
future...

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feisty 20070210/herd5 persistent mode doesn't work
https://bugs.launchpad.net/bugs/84591
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