You need a tce directory with at minimum Xvesa.tcz, Xlibs.tcz, Xprogs.tcz, fltk-1.10.tcz, flwm_topside.tcz, and wbar.tcz. These are currently in the iso image in the cde directory. Since you are running from directly from the iso then I would suggest, If you have space or even are able to write to memstick, copy from your booted system the cde/ to the memstick renaming it tce. The goal is to have a writable tce directory on the memstick.