I found that opening the Desktop in konqueror, gives an icon to double click on to install from the live
cd. It runs anaconda at that point.
Using system-config-lvm to move lvms and resize the ext3 file systems from FC6, worked really great from the live cd. (Made my fc6 LogVol00 root files 40 GB, from 180GB to make room for fc7.)
I found a small glitch in the install method. I had already enabled swap, but ananconda tried to re-enable the swap partition, and when that failed, it popped up an error message saying enabling swap had failed, and to click ok to reboot the computer. Clicking Ok only makes anaconda exit at that point it doesn't reboot the computer. This was frustrating, because I had already done lots of partions, mount point configuration, and custom network configuration.
I am going to try the install from live CD again today, this time starting with swap off, I suspect it will manage to install.
So to anyone else out there wanting to install from the KDE live cd, be sure you have swap off, before you start anaconda in konqueror.