The baseurls in /usr/share/livecd-tools/livecd-fedora-desktop.ks point to http://download.fedora.redhat.com/pub/fedora/linux/core/development/i386/os which redirects to fedoraproject.org, making the livecd-creator traceback.
What's the traceback you're getting?
updated machine to f8, where this no longer happens.