Experiencing same problem with the Kubuntu Feisty Fawn Beta CD iso
(Version 7.04, built on 20070322.1)

Symptoms:
 - No persistence was observed (bookmarks, software installed from Adept)
 - Creating a new user (other than the default, 'ubuntu') did not help.
 - The casper-rw icon for my USB key appears on the desktop.
 - An error about "unable to umount /cow" appears on shutdown
 - Casper claims to be syncing files at shutdown, but nothing is written to the 
USB key.

Hopefully this can be fixed before Feisty goes prime time!

** Attachment added: "Screenshot of USB key icon appearing on Desktop"
   http://librarian.launchpad.net/6988478/casperscreenshot.png

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feisty 20070210/herd5 persistent mode doesn't work
https://launchpad.net/bugs/84591

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