Description of problem:

Unable to set a root password for a livecd image using the kickstart configuration.

Version-Release number of selected component (if applicable):
livecd-tools-017-1.fc9

How reproducible:
Create livecd using attached kickstart file:
sudo livecd-creator -c livecd-dnet-backup.ks -t /home/user/tmp
--cache=/home/user/tmp/yum-cache



Steps to Reproduce:
1. create livecd
2. boot using qemu / livecd-to-usb
3. try to login as root
  
Actual results:
login doesn't accept set password.

Expected results:
login should accept set password.

Additional info:
Methods tried to set root-password:
1) rootpw test

2) 
%post
echo 'test' | passwd --stdin root
%end

3) 
start livecd into user-level 1; 
use passwd to set root password
(kickstart has: auth --useshadow --enablemd5)
verify: /etc/shadow remains unchanged
goto runlevel 3
try to login with newly set root password: but fails.