I have tested this as well and to make the liveCD use existing swap partitions, 
the 13swap script should call /bin/dd not dd.
With 256M memory and no swap available ubiquity freezes during install. If 
there's swap to use, it finishes and feels a lot more responsive.

** Changed in: casper (Ubuntu)
   Importance: Undecided => Medium
       Target: None => ubuntu-7.04

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Broken PATH set by casper (Was: swap partitions not automounted by the LiveCD)
https://launchpad.net/bugs/62868

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