Thank you, Archie and AS. I haven't check my email today, but if his mail is not getting through, I will look into that problem.
As far as the topic of this post, I had found some of what AS reports and have successfully patched a 3.4.7 kernel with unionfs, but it looks dead after that. If overlayfs is going into the kernel there is no more need for it. I read that overlayfs is a smaller and simpler design that accomplish the same thing, but at this time it is not a simple patch. I will continue working with the 3.4.7 kernel and submit for testing soon, but I will also start looking at what is needed to change mylivecd to use overlyfs. Thanks.