I am trying to put a F17 Live system on a usb stick.
Everything works except the persistent overlay. (Note: I am using an ext3 on the USB stick because I want a big home.img)
Dracut gives me an error along the lines "not able to mount persistent overlay, using temporary"
I saw some bugs related to dracut in F15 but I am now on F16 (that particular "fix" didn't work anyway). Otherwise I saw just questions but no solutions (or just very old stuff)
Using latest F16 distro + patches.