Question on using Live DVD as KIWI-LTSP server to allow PXE boot

I configured a VMware Server 1.0.8, virtual PC (2 NIC's) to boot the 
live-DVD.
Then configured the LTSP function, etc. and PXE'd in from another 
virtual machine.

linux1 login seems to be a sys admin account, as no password required 
for YaST, etc.
Also the Live Installer icon is on the desktop and active.
Is this okay running a thin client on the live DVD?
(I realize in the long run there isn't a problem)

Jigish Gohil previously emailed me this information about the 5 thin 
clients, which I'm trying to grasp.
"Those users are only in live sessions, for security reasons we cannot 
have normal users with known password installed on everyone's PC."

I don't understand the full value of using a live DVD as a PXE server.
It works, is usable, good proof of concept., but each reboot requires 
re-configuration.

Am I reading too much in, and it is just a demo and not for actual use ?
Or am I just not using it correctly yet.

Running in a virtual machine I could probably reconfigure users, 
desktops etc.
Then possibly take a snapshot to maintain the revisions, but it may not 
work, being set for iso booting.

I will eventually do the real install but would like to know more about 
this live session feature too.

Thank you, Bob

-- 
R. W. (Bob) Neeper 
Community Library
44 Burrer Dr.
Sunbury, Oh 43074