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FWIW, no problems with lxde-i386-20100222.19.iso on a live USB stick
I should add, that I (almost) always turn off selinux, as I did in the trial
above.
Tried it again without turning off selinux - it wasn't pretty. Several kernel
crashes reported by abrt, no nm-applet displayed (but nm-applet was
apparently running) so couldn't get a network connection, various dbus
errors, no tty2-tty6, telinit 3 failed.