The livefs CD is very useful for cloning systems, as it gets you a live, working FreeBSD system, booted off a CD. Anything you can do with a minimal install of FreeBSD on a harddrive, you can do from the livefs. It comes in handy quite a bit.
However, it's not a LiveCD in the sense that you can use it for everyday work. It's more a fixit/rescue/test CD.
CD1 is not needed for any of the above. The livefs is a bootable CD.
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