Confirmed that the below edits to mylivecd has allowed me to use an ext4 filesystem on a partition and run the generated ISO as a live install from there.
I have tested this on a USB flash drive using PCLinuxOS-liveUSB and also on a fixed disk partition, using a script in development to create a Poorman's Install on fixed disk.
I would like to see this - or some similar scheme - added to the mylivecd script for the next release ...... and if possible to have the new ISOs built using it, so they could be run from ext4 partitions.
Congrats
as ......... and a big thank you for this.

**
to be added near line 767:
do_cmd("cp -r $o_root/lib/modules/$o_kernel/kernel/fs/jbd2 $dir/lib/modules/$o_kernel/kernel/fs", ++$pos);
do_cmd("cp -r $o_root/lib/modules/$o_kernel/kernel/fs/ext4 $dir/lib/modules/$o_kernel/kernel/fs", ++$pos);to be added near line 987
do_cmd("cp -r $o_root/lib/modules/$o_mbkopt/kernel/fs/ext4 $dir/lib/modules/$o_mbkopt/kernel/fs", ++$pos);
do_cmd("cp -r $o_root/lib/modules/$o_mbkopt/kernel/fs/jbd2 $dir/lib/modules/$o_mbkopt/kernel/fs", ++$pos);