On Mon, Jul 08, 2013 at 12:16:29 -0400,
  "D. Hugh Redelmeier" <h...@mimosa.com> wrote:
I have built a USB stick with a Live Fedora 19 on it.

I gave it a large overlay to make room for updates.

I booted the stick and did a yum update.  (Boy was that slow.  I think
that the Kingston DT101 G2 stick, combined with the USB 2.0 interface, was
the cause.)

If I install from this stick, will the installed system be already
updated?

The way things currently work the anwser is yes. The file system is essentially copied off the live image for live installs. (Note that updating a kernel on a live image doesn't change the kernel being booted when using the live image.)
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