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Puppy Linux has a great feature:

as in wikipedia is mentioned

However, it is possible to save files upon shutdown. This feature allows the user to either save the file to disk (USB, HDD etc.) or even write the file system to the same CD puppy is booted from if "multisession" was used to create the booted CD (on CD-Rs as well as CD-RW) where a CD burner is present.

I would be interested in getting to know if there are any other livecds that also offer this feature?

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Instead of LiveCD, you can create LiveUSB. It functions just like LiveCD but can store the information persistently in a file system called Casper-rw. This file can reside on hardrive or USB drive itself.

https://wiki.ubuntu.com/LiveUsbPendrivePersistent

http://en.wikipedia.org/wiki/Live_USB

http://www.debuntu.org/how-to-install-ubuntu-linux-on-usb-bar

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Those links look rather too wordy for me. I prefer to use Suse's imagewriter program to create a self contained live USB system. – Neal Dec 27 '10 at 22:13

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