Most of the focus is to get the livecd to work. Some of what makes the livecd work breaks the full hard drive install. Multi users is broke as are some other things you wouldn't care about on a livecd. Use unmodified default user tux,never upgrade and you won't have problems.

The first error is telling you there is no directory /var/log to create dmesg.log and boot.log in.

Make the directory if you don't have it:

root@slitaz: mkdir /var/log

Correct permissions:

root@slitaz: chmod 755 /var/log

Correct ownership:

root@slitaz: chown root:root /var/log

I suggest using slim login manager to try starting xserver
There is issue with tazx making .xsession for /home/tux but you can't run startx as tux,only root Hence the error /root/.xsession: not found

root@slitaz: slim

Once you get xorg configured to autostart add slim to /etc/rcS.conf RUN_DAEMONS=

Thanks Mojo. I tried adding the directory (actually the entire /var dir was missing), but when I try doing slim I get:
Slim.../usr/bin/slim: error while loading shared libraries: /usr/lib/libpng12.so.0 file too short.

So are you saying it's basically a known issue that installing to HDD is difficult?

If you have /home/tux/.xsession copy it to /root and run startx
Installing the full slitaz-3.0.iso to flash/hard drive full install is pretty straight forward
I've never heard of a successful hard drive install of the slitaz low-ram cdrom.
When you read here: http://doc.slitaz.org/en:guides:lowramcd?s[]=low&s[]=ram
about all the tricks to make it run,you have to wonder what's going to break when you attempt to install to a hard drive.

Thanks again...mojo, I tried the full slitaz, but I couldn't boot into the GUI b/c I only have 128 MB of ram. Are there instructions on how to install the full slitaz to HDD without the gui?

The command for the slitaz installer is called slitaz-installer - you should su to root or be logged in as root before you can use it though. The defaults is the word root for both username and password of the root account. Should work just as well from the command line as it does in the GUI - in fact the gui calls xterm for the installer.

Hope that helps! :)

Thanks Trixar, but I'm still confused. What are the steps to get the full iso to install to HDD? I have the full iso disk, but I can't boot it b/c of my lo-ram.

It is possible to make the SliTaz 3.0 iso start in text mode, but it requires some doing. You may have to write down the following:
1. Boot from the CD
2. At the Slitaz boot loader screen (Where it shows boot: at the bottom) press F6

Pressing F6 stops the CD from auto-booting and gives you time to type the following:
3. Type slitaz screen=text and press enter

Now everything should boot up normally, only instead of starting the GUI, it will instead drop you into command line at a login screen:
4. Type root for the login (name) and root for the password.
5. Type slitaz-installer and press enter

This should get you to the installer. Hopefully this gets you far enough to get everything installed. Once installed, 128MB RAM for booting shouldn't be a problem anymore.