Hello, 
I, too, am having issues with the "persistent" feature. 

I have tried both of the initial ramdisk files posted here for Ubuntu
(by FlipsideTech and Adam Porter), and I am still getting BusyBox. I
want to also mention that when I used the file from Adam Porter, it gave
me a Kubuntu splash screen (before going to BusyBox).

When I use either of these files, I have the same problem that Christian
mentioned. It doesn't fail at the same spot, but it still fails
(BusyBox). Right before that, the output is "Begin: Mounting root file
system... ..." - following that, I get two blank lines folowed by
BusyBox.

Vincent: What is the workaround you are referring to? If it is replacing the 
mentioned file with one of the ones posted, it didn't work for me. If it is the 
process in the post at the link below, I don't understand what I need to do to 
get it to work.
https://bugs.launchpad.net/ubuntu/+source/casper/+bug/219192/comments/3

-- 
[hardy] livecd: keyword "persistent" results in busybox and (initramfs)
https://bugs.launchpad.net/bugs/219192
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