Creating files on NTFS from Linux can ruin your the contents of your drive. Don't do it! I haven't used captiveNTFS which is supposed to fix this problem so I can't comment on that.

If you can boot the liveCD on a PC with vfat32 or ext3, can't you cat the CD to an iso file on one of those partitions?

Just a thought!

Regards,
AJG