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No. the init will not create the file.

To create a persistent image file, you must use the boot code that was introduced in Knoppix 7.4 , I think it's createimage , but I'm not sure. I don't use...

@ PBear.SF

In http://knoppix.net/forum/threads/30770-suggestion-to-load-persistent-settings-when-booting-from-CD I suggested a change to the init script in the minirt, that could be used for this...