We can confirm that 2010.12 will not upgrade to 2011 and create a livecd that is installable.
We started with 3 laptops, HP Dv7, Compaq Presario B3800 and an Acer Aspire 9305, installing 2010.12 on all.
Doing a full update and upgrade to the 2011 system. Not one of the Laptops could produce a useable boot disk.
We the created a 2011 system on one of the desktops and fully updated it. Made a livecd and install it on each Laptop. now...each laptop can produce bootable/installable iso's.
We are very happy little laddies.
Without doubt, PCLinuxos is the greatest and best distro around.
Great work guys, and we are sorry to have caused so much trouble to all.