Home will be there. Your problem with remastering was size. 35G home is way too big! I use one home partition for 4 distros. I thought that the --nodir would take out all of the folders except the pclos folder in the /home partition. I know, it is probably way weird. The pclos home folder is only 1.6 gb.
use this command to verify about the real sizes
of each folder in /home
du -s /home/*
I think you are correct, and you are effectively trying to remaster 1.6 GB from /home + 3.4 GB from '/' ... which should work.
... as I have a suspect I want to verify ... there will be a follow up shortly.
Anyway, Can I use this test.iso to install on my laptop?
that ISO actually will work, but doesn't contain a /home, you will need to login as root and create a new user as first step, then relogin.
Then can I copy my files over from my (desktop pc) pclos home folder and paste them in the laptop pclos /home folder?
If so, then I will need to get the hidden files and folders also.
Hidden files are all inside each user home, therefore inside /home/<user>, a tar archive of /home/<user> will include all files including those hidden.
Can I rename test.iso to a better name and it still work?
Yes, of course.