[CentOS] Writable Centos LiveCD on Embeded Linux?

Hi all,
I was wondering if it possible to have a Centos LiveCD installation boot 
from
a Compact Flash in a embeded x86 (Wrap/Alix) platform *and* be able to
save the changes made to the File System back to the Flash memory.

So, the next time the LiveCD boots it will have all the changes made.

The problem I'm trying yo solve is:
- fast boot time
- fast recovery when the Linux is shutdown improperly (power failure, etc)
- be able to upgrade some rpm packages via yum

Will a LiveCD (squash/union FS) be a better solution than booting Centos
directly from an ext2(fewer I/O than ext3) partition?

Many thanks in advance
Oliver

-- 
Oliver Schulze L.
Asuncion - Paraguay
http://tinymailto.com/oliver