I think I'm on to something.
I formatted tbe 16GB flash drive to FAT32. Then I resized to1GB. The rest I made an ext.4 partition.
I installed the live version (from the CD) onto the FAT32 partition
I need to label the ext.4 to whatever the persistence file name is on the FAT32 partition. Then delete that file from the FAT32 partition.

Question: What is the persistance file name and where would it be located?