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2.2.6. Persistent Home Directory

Support for keeping a persistent /home with the rest of the system stateless has been added for Fedora 10. This includes support for encrypting /home to protect your system if your USB stick is lost or stolen. To use this feature, download the Live image and run the following command:
livecd-iso-to-disk --home-size-mb 512 /path/to/live.iso /dev/sdb1
Replace /dev/sdb1 with the partition where you want to put the image.
Replace 512 with the desired size in megabytes of the persistent /home. The livecd-iso-to-disk shell script is stored in the LiveOS directory at the top level of the CD image. The USB media must have sufficient free space for the Fedora Live image, plus the /home, plus any other data to be stored on the media. By default, this encrypts your data and prompts for a passphrase to use. If you want to have an unencrypted /home, then you can specify --unencrypted-home.
Note that later runs of livecd-iso-to-disk preserve the /home that is created on the USB stick, continuing to use it even if you change your Live image.