1. Get dapper based Ubuntu live CD, either ubuntu, xubuntu or kubuntu will do.
2. Copy all the files from CD to a directory.
3. The system need to have squashfs-tool and squashfs kernel module.
4. Go to cd:/casper/, mount the filesystem.squashfs to a directory.
5. Copy the files out from that directory to a new directory.
6. chroot to the resultant directory.
7. Edit the /etc/apt/sources.list to point to desired location, eg. your own repositories.
8. Use dpkg/apt to add/remove/upgrade packages in the system.
9. exit the chroot environment.
10. Use mksquashfs to compress the chroot environment back to a new filesystem.squashfs.
11. Replace it and burn a new CD, then you can have your customized live CD!