I've been running my knoppix 3.4 remaster off of compact flash for almost a year, and I could never go back to liveCD. (Except now that I need to upgrade to 3.8.1 and start over with my customizations, since I want UNIONFS)

Knoppix off CF is not only faster (almost as fast and cheaper than the TORAM option), and you have none of that spontaneous CD activity when you are surfing, and you don't have to limit yourself to 700 Mb when you remaster. I have a 1 Gb CF and plan to upgrade to a 2 Gb CF so that I can add many more packages.

I sure hope knoppix 3.8.1 with UNIONFS doesn't have issues when installed to CF.

For an excellent guide on how to install knoppix to CF, see http://staff.washington.edu/gray/KnoppixCFguide.html