... the gist of the problem is that /usr/share/mime/mime.cache was
in the squashfs.img , so mime was not able to tell what the file was.
That works for me. Apply the fix to the /usr/share/runtime-cleanup.tmpl
of the box which runs pungi, and exclude systemd-44-8.fc17.x86_64
and systemd-sysv-44-8.fc17.x86_64 from the updates. My resulting DVD
boots, gives a shell on VT2 immediately, and does not get the Python
traceback (does display .png correctly.)