I have created a persistent live usb of Lubuntu 12.10 on a 16 GB flash pendrive with a 4GB space for persistency.

It basically works like an installation, as new programs can be installed and new settings and customizations added and remembered. Except that the username in terminal is lubuntu and at boot/startup am not asked for a password and the system starts without passing through the logging stage.

But there is a problem if one (e.g. in order to initiate certains settings) is logging out instead of restarting/rebooting: the logging screen appears and contains initially no name and no space for password, and there's no login button: but if i click or press enter the name of user is "Other" and space for pass and login button appear. The name of the user cannot be changed (i guess there's no real user registered) and login doesn't work without password entered. Also, the passwords "ubuntu" or "lubuntu" are reported as incorrect.

Is there a way of using logout-and-in or should this be avoided?