After following the instructions at: https://help.ubuntu.com/community/LiveCDCustomizationFromScratch; I installed xorg, gdm, and gnome. For some reason when I try to run it on both of my computers and qemu, it freezes up. Sadly I cant access a console to view all my logs, but I do have a dump of the boot process. I can also add and remove packages by ch-rooting into the compressed file-system. DUMP: http://pastebin.com/qRZFAAeM