Finished testing today and it works as it should.
Final cleanup of the script has been completed and I have started on the gui.
Chris over at Klikit is making an icon for remastersys and as soon as that and the gui are completed, remastersys 2.0 will be released.
Everything is finally working as it should and all the existing bugs have been resolved:
1 - No longer has a 2 Gig limit for the squashfs file.
2 - Login and password issues of the livecd user are corrected.
3 - backup option provides a true system backup and the login for the backup livecd is the same as your system meaning there is no livecd user and it will bring up the gdm or kdm login screen
4 - md5sum for the files on the cd works as it should and doesn't fail unless something is really wrong with the cd burn