You may need to use the bootcode "tinycore waitusb=5" or whatever number of seconds it takes to register your usb key.
to Jason W: Ah! That was missing.
So, to recap (again) as a "first time user" who wants to do PPI while in cloud mode:
1) Go to Tools -> Make tclocal file/directory
2) Select a valid disk partition
3) Verify the tclocal directory was created.
Now, if TCE apps are already installed:
1) # mount << new-device holding tclocal >>
2) # cp -a /usr/local/* /mnt/<<newdevice>>/tclocal/
3) Review the TCE notes on each app installed.
(Note if filetool, Xfiletool, bootlocal, etc must be updated for retaining info on next boot)
3) Activate Panel, select Backup/Restore
4) input the device name holding the (new) backup information (mybackup.tgz)
5) Reboot
6) modify the (grub) boot line (once) to include 'pause local=<<name of new-device holding tclocal>>'
As a new user, these steps were not obvious at all when booting into cloud-mode, and *
then* deciding PPI is the way to go...
Hope this helps.