I recently installed Fedora 12 on my USB drive. But I am not able to save the changes I do in a live session. I created 2 users and put some icons in desktop... But after I restarted Fedora from the live usb, the changes could not be seen.

Can anybody suggest what to do to save the changes?

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I recently installed fedora 12 on my USB drive

Did you install or copy the Live CD ISO onto the flash disk ? Seems like you copied the live CD ISO onto the flash disk than installed it.

You need to create a Live USB with persistence mode, have a look at this article for instructions on how to do so.

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