I'm booting Feisty final from a USB drive on a ThinkPad R60 and am
experiencing the same problem. Persistent isn't persistent, and the
casper-rw volume appears as a volume on the desktop (in fact, the folder
is protected so only root has rw acess) - Any workarounds to this would
be appreciated. I've tried playing with permissions on the casper-rw
volume, but I think the problem is down to the way the volume is
mounted.

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