This thread made me laugh out loud.

Services are NOT more secure just because its running off a liveCD. All that means is that your liability of a fscked up harddrive dissapears.

Example:

You have ArchLinux 0.8 installed on your harddrive and run an sshd. The version of ssh you're using is: OpenSSH_4.6p1, OpenSSL 0.9.8e. This version has a remote exploit out that allows an attacker to execute arbitrary commands on the OS running that version of the daemon. Conclusion: you are fscked.

Example 2:
You have a LiveCD popped in and you decide to run a ssh daemon and have some users on it. You don't have a harddrive in the machine, just a motherboard, RAM, and a CDROM. The version of ssh you are using is: OpenSSH_4.6p1, OpenSSL 0.9.8e. This version has a remote exploit out that allows an attacker to execute arbitrary commands on the OS running that version of the daemon. Conclusion: you are fscked.