In this article I am going to show you how to take a downloaded Ubuntu 9.10 iso image, mount it, customize it, and rebuild the Live CD from your newly customized image. This process can be time consuming, but is worth it. More here

Here on Ghacks I have mentioned a few tools that allow you to create various types of Linux CDs. Most of these tools allow you to create Live CDs that are either images of your current working distribution or tools to create a Live CD with special packages. But none of these tools, so far, have allowed you to really get customized with your Live CD. You can’t specify desktop backgrounds or other configuration options.