On Wed, Nov 14, 2012 at 18:29:44 +0100,
  "Joshua C." <[email protected]> wrote:

I'm not that sure about this. As I wrote: I had the same problem and
read somewhere that SELinux should be disabled for the livecd-creator
to work properly. This was introduced somewhere during f16 and I think
it's quite annoying. I'll try find it in the docs.

There have certainly been issues with livecd-creator and selinux at times, but Dan has put significant effort in getting it to work. The intention is that it should work and not working is a bug.
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