Glad I went to bed and slept on the problem, that saved me lots of time. well I have renamed as suggested, now it works fine.
Could be interesting to combine the PoorMan and PoorMan2 installs in one partition. I would love a script I think that given an iso file as input then it would automatically do a poor man install in partition X, in the process setting up a new directory and renaming livecd.sqfs. Basically following what old-polack posted eralier in this topic.
Something to in the coming winter.
I am presently working on the script as a companion to the LiveUSB Creator script.http://www.pclinuxos.com/forum/index.php/topic,88330.msg737859.html
Essentially it should duplicate most of the functions available on the live USB stick ..... multiple versions on the one partition.