Here in my hometown of Toronto, we have a LinuxWorld tradeshow coming up in a few weeks and I will definitely be burning and distributing a few Kanotix CDs.
2. You could simplify your handling of unionfs somewhat by creating the unionrw folder inside the home directory as described here:
http://www.kanotix.com/FAQ-id_cat-63.html#q334
That's an interesting point about unionfs... I am going to give it a try. Thanks for the suggestion!