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I'm following the guides at https://help.ubuntu.com/community/LiveCDCustomization and https://help.ubuntu.com/community/Installation/FromImageLoadedOnHardDrive in order to make a custom ubuntu cd to send to a family member. It appears to me that if i make a custom image that when i chose the Install option from the boot menu it will actually install that custom image with all of the packages that I chose and not the default ubuntu installation. But I wanted to make sure that is the case because if I cannot create an installable custom cd then its useless for what I want to do. Can anybody clarify this for me? Thank you.

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up vote 2 down vote accepted

When you customize a CD in this manner (creating usually a DVD sized image), it will be in essence an image of an installed system squashed into a compressed image.

When you install on a new system, all the programs you installed (and changes made to the underlying system) will be carried over.

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What you see on the newly created custom live cd, is what you get...

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you don't have to dumb it down for me! –  Matt Phillips Nov 1 '10 at 21:59
    
How do you suggest that I dumbed it down? All I did was answer your question. –  TheX Nov 2 '10 at 0:47
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