I have been playing around with slitaz on various machines for the last few weeks. The stable version 3.0 usually installed and had working desktop for Tux, the user account. But cooking always had a problem similiar to what you describe. The solution for me was to install to hd, then boot to live cd, copy all files (including hidden) in the Tux directory on the cd and paste into the /home/tux directory on the hd intall and overwrite whatever is there. I would start pcman(spell?) from xterm as root so I had permissions to do this.
Then boot back to the hd install, get to xterm and as root: chown -R tux:tux /home/tux
Then when I logged back as tux all would be well. Not sure how this will work with another username other than tux.
Hope this helps.
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