You might need to do some voodoo
Many mystical things go on here but we don't do voodoo. An example of what can be done:
I was given a laptop with a knackered mainboard. The 320 gig HD was good and I got already a £5 usb caddy
Repartitioned one fat32, one ext4. Refracta snapshot "live" installed with full LUKS persistence to part1 with syslinux bootloader.
The FAT part is large enough to contain other live images in a multiboot setup with space left for data transfer (music and vids) with lesser OS's
It actually boots and runs faster on my old Lenovo than the installed squeeze.. and can boot different machines. It fits in the laptop bag. We wont be dd'ing an isohybrid to that one nor will "ubkernel" be it's master!
On-topic a bit more: Some Debian "deviants" use modified (or very different) "live-boot" mechanisms but whatever is in /isolinux is mostly syslinux compatible by just changing text strings (and directory/file names) from "isolinux" to "syslinux"
EDIT the interesting bit is what is in crunchbang's live.cfg