We believe that your issue has been closed by the upload of
Version 0.0.14 of grml-live from Michael Prokop <mika@grml.org>.
The explanation is attached below

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Format: 1.7
Date: Mon, 17 Dec 2007 00:51:05 +0100
Source: grml-live
Binary: grml-live
Architecture: source all
Version: 0.0.14
Distribution: unstable
Urgency: low
Maintainer: Michael Prokop <mika@grml.org>
Changed-By: Michael Prokop <mika@grml.org>
Description: 
 grml-live  - build system for creating a grml (based) live-cd
Changes: 
 grml-live (0.0.14) unstable; urgency=low
 .
   * Include initial version of the grml-live-remaster script,
     contributed by Michael Schierl (thanks!) [Closes: issue331]
   * Bump Standard-Version to 3.7.3 (no further changes).
   * Set debconf configuration for postfix via
     /etc/grml/fai/config/scripts/GRMLBASE/05-hostname
   * Improve check for presence of FAI log directory in
     /etc/grml/fai/config/scripts/GRMLBASE/95-package-information
   * Configure apt-listchanges via new script
     /etc/grml/fai/config/scripts/GRMLBASE/97-apt-listchanges
   * Make sure packages are being removed before docs are being
     deleted in /etc/grml/fai/config/scripts/GRMLBASE/98-clean-chroot
   * Create grml-live.log-file with permissions 664.
   * Adjust buildd/functions.sh for new logging.
   * Fix kernel related packages for GRML_MEDIUM and GRML_FULL
     on AMD64 architecture. Add several new kernel packages for amd64
     to GRML_FULL.
   * Split grml + grml-files into x86 vs. amd64 (grml64 + grml-files64).
   * Drop packages from GRML_FULL:
     - findimagedupes: too many new dependencies, being:
       libgraphics-magick-perl libgraphicsmagick1 libwmf0.2-7
     - netpipes: conflicts with timelimit (see #457444) and does
       not support IPv6 yet
   * Add new packages to GRML_FULL:
     - asql
     - at76-usb-modules-2.6.23-grml
     - edac-utils
     - ifupdown-extra
     - opencryptoki
     - pmailq
     - r6040-modules-2.6.23-grml
     - scamper
     - timelimit
     - virtualbox-ose-guest-modules-2.6.23-grml
     - virtualbox-ose-guest-utils
Files: 
 73840d48e6e777208320dec110700c0a 607 grml extra grml-live_0.0.14.dsc
 8ff09bb520d4f2d5148c9ca149aa2331 1983605 grml extra grml-live_0.0.14.tar.gz
 7c9cbe063eb5ae94afcc0518ba82e6ae 1963484 grml extra grml-live_0.0.14_all.deb

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Michael Schierl's grml-live-remaster (see http://article.gmane.org/
gmane.linux.distributions.grml.user/1444) works great. We just need to add some 
more error checking (enough free RAM? mksquashfs/mkisofs commands available?) 
and make sure it can be re-executed on building errors.