At shutdown, all the changed files in your home directory are saved back to CD. That's it. Next time you boot, all the personal files are restored.
Hehehe that is a very cool thing. I think I'll be using this quite a lot (whenever I am in need of working on a computer that isn't mine). Thanks for the link!
Downloaded it and ran it yesterday. Works well but I still like my DSL (Damn Small Linux) running on a 512 MB Pendrive. I just wish they would get the sound drivers sorted out.