First, thank you for the clarification about the placement of the /tce/optional. I understand now: 1) inside the cpio archive -- loads to ramdisk; 2) outside archive; runs from storage device.
I'll consider this, but option two is probably my preference, since I am expecting users to primarily boot from a usb device and store recovered data back to the device. Keeping the ramdisk smaller will provide more process room.
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I seem to have problems with persistence of extensions when saving local
I don't understand. You put them in /tce/optional but they don't persist? Try to give us a more detailed picture of exactly what your steps were.
I rebuilt the tinycore.gz cpio archive with the new rebuildfstab and desktop graphic. No other changes to files in the archive. I placed the archive back in /boot and added to the iso /tce/onboot.lst and tce/optional. I placed the extensions, with their md5.txt and .dep file in the /tce/optional I then remastered the iso. The iso file tree looks like this:
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├── [drwx------ root root ] boot
│ ├── [-r--r--r-- root root ] bzImage
│ ├── [drwx------ root root ] isolinux
│ │ ├── [-r--r--r-- root root ] boot.cat
│ │ ├── [-r--r--r-- root root ] boot.msg
│ │ ├── [-r--r--r-- root root ] f2
│ │ ├── [-r--r--r-- root root ] f3
│ │ ├── [-r--r--r-- root root ] f4
│ │ ├── [-r--r--r-- root root ] isolinux.bin
│ │ └── [-r--r--r-- root root ] isolinux.cfg
│ └── [-rw-r--r-- jlehr jlehr ] tinycore.gz
└── [drwxr-xr-x root root ] tce
├── [-rw-r--r-- root root ] onboot.lst
└── [drwxr-xr-x root root ] optional
├── [-rw-r--r-- root root ] dosfstools-3.tcz
├── [-rw-r--r-- root root ] dosfstools-3.tcz.md5.txt
├── [-rw-r--r-- root root ] filesystems-2.6.33.3-tinycore.tcz
├── [-rw-r--r-- root root ] filesystems-2.6.33.3-tinycore.tcz.dep
├── [-rw-r--r-- root root ] filesystems-2.6.33.3-tinycore.tcz.md5.txt
├── [-rw-r--r-- root root ] mtd-2.6.33.3-tinycore.tcz
├── [-rw-r--r-- root root ] mtd-2.6.33.3-tinycore.tcz.md5.txt
├── [-rw-r--r-- root root ] ntfs-3g.tcz
├── [-rw-r--r-- root root ] ntfs-3g.tcz.md5.txt
├── [-rw-r--r-- root root ] ntfsprogs.tcz
└── [-rw-r--r-- root root ] ntfsprogs.tcz.md5.txt
On boot, the changes in the archive are present in the running system. The extensions are not loaded. Looking carefully at the boot sequence, I note the "message: touch /mnt/hdc/tce/xwbar.lst permission denied" just before the desktop loads.