f-12 livecd-creator from live-cd-tools-031-1.fc12.1.i686 gives the following error:
Error message: passwd: unconfined_u:unconfined_r:livecd_t:s0-s0:c0.c1023 is not authorized to change the password of root
This occurs just after installing all the packages and the program keeps running to the end without further error messages.
The resulting iso or usb-flash image produced does boot but you cannot install it to disk or do any other operation that requires a root password.
I was testing during the f-12 beta period and this behavior started during the last week of Oct 2009. I did report this to the development team but it must have been missed. Bugzilla 5333334.
Perhaps this posting will get the attention of the developers. I see others that are having troubles that this may explain.