This bug was fixed in the package casper - 1.148

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casper (1.148) intrepid; urgency=low

  * Skip remounting read-only in try_mount as it's unnecessary and
    breaks persistence.  Thanks James Westby (LP: #274076).

 -- Evan Dandrea <[EMAIL PROTECTED]>   Wed, 15 Oct 2008 13:13:38 -0400

** Changed in: casper (Ubuntu Intrepid)
       Status: Confirmed => Fix Released

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Running the Intrepid LiveCD in persistent mode results in busybox prompt
https://bugs.launchpad.net/bugs/274076
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