"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."

That's not quite true. It should be able to install everything into RAM.
However, I'm running the LiveCD from my USB drive in "persistent" mode
so everything I install should be saved to my USB drive upon shutdown.
Worked in Edgy and Feisty.

** Changed in: ubuntu
       Status: Invalid => New

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