Description of problem:
When running livecd-creator, python fails with this exception:
Traceback (most recent call last):
  File "/usr/bin/livecd-creator", line 1088, in <module>
    sys.exit(main())
  File "/usr/bin/livecd-creator", line 1069, in main
    target.install()
  File "/usr/bin/livecd-creator", line 872, in install
    self.configureSystem()
  File "/usr/bin/livecd-creator", line 694, in configureSystem
    subprocess.call(["/usr/bin/passwd", "-d", "root"], preexec_fn=self.run_in_root)
  File "/usr/lib64/python2.5/subprocess.py", line 443, in call
    return Popen(*popenargs, **kwargs).wait()
  File "/usr/lib64/python2.5/subprocess.py", line 593, in __init__
    errread, errwrite)
  File "/usr/lib64/python2.5/subprocess.py", line 1051, in _execute_child
    raise child_exception
OSError: [Errno 2] No such file or directory

This is while building livecds based on the fc6 livecd media within fc7 OS. 

Version-Release number of selected component (if applicable):
livecd-tools 009-1.fc7
python 2.5-12
How reproducible:
Very.

Steps to Reproduce:
1. Install F7 on x86_64 arch
2. Install livecd-tools
3. yum update
4. execute this command with packages:
  livecd-creator --repo=c6,file:///root/repo/core/
--repo=lcd6,file:///root/base_packages --package=qwik-livecd-base
--package=qwik-logos --package=qwik-livecd-disk
--fslabel=qwik-linux-disk-liveCD-v1.3

Actual results:
Python raises exception and dies.

Expected results:
Complete livecd creation, iso written to disk.

Additional info: