Thanks for your bug report! Correct me if I'm wrong but I don't see
anyway that you could install packages when using the live cd.  The
issue is that the cd-rom is read only and there most likely isn't enough
memory to store _Everything_ so it just fails.  IT probably should be
more graceful, but I can't see this as being incorrect.  Really the live
cd is just there to show the system off and not as a real desktop
solution.

  Thanks,
     ~ Mike

-- 
Can't install software in Xubuntu Gutsy Gibbon beta LiveCD
https://bugs.launchpad.net/bugs/147306
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