These Settings are in the GRUB4dos(booting over NT-Bootloader Windows XP)

sda8 is my ext2 Partition, you must use your ext2 Partition (sdaX)

Code:
title BackTrack3 Final
root (hd0,5)
kernel /boot/vmlinuz max_loop=255 initrd=initrd.gz init=linuxrc load_ramdisk=1 root=/dev/ram0 rw changes=/dev/sda8 autoexec=xconf;kdm
prompt_ramdisk=0 ramdisk_size=6666 root=/dev/ram0 rw
initrd /boot/initrd.gz
boot
I have copied the 2 folders from the usb.iso (BT3 and boot) to my FAT or FAT32 Partition.(tested all 2 ways)

and sda8 is the ext2 Partition with folder changes ( changes must have full access; cd to sda8 and #chmod 777 changes

importantly if you want to boot the first time you must delite and deactivate in GRUB Loader the words, if you donīt do this, the init will be become errors!!!!!

Code:
changes=/dev/sda8
and then the system is running, go to the sda8 (ext2 Partition)
and
Code:
cd ..
cd mnt
cd sda8 (your ext2 Partition)
mkdir changes
chmod 777 changes
or you write down in the GRUB-Loader menu.lst

Code:
title BackTrack3 - first run for creating changes (without changes=/dev/sda8)
root (hd0,5)
kernel /boot/vmlinuz max_loop=255 initrd=initrd.gz init=linuxrc load_ramdisk=1 root=/dev/ram0 rw  autoexec=xconf;kdm
prompt_ramdisk=0 ramdisk_size=6666 root=/dev/ram0 rw
initrd /boot/initrd.gz
boot

title BackTrack3 Final (with changes=/dev/sda8)
root (hd0,5)
kernel /boot/vmlinuz max_loop=255 initrd=initrd.gz init=linuxrc load_ramdisk=1 root=/dev/ram0 rw changes=/dev/sda8 autoexec=xconf;kdm
prompt_ramdisk=0 ramdisk_size=6666 root=/dev/ram0 rw
initrd /boot/initrd.gz
boot


I hope it is helpfull for you, and you can unstersand my "broken" english.