I just created a Kali 1.0.6 live USB using a tool called "Mac Linux USB Loader" and everything seems fine up until the point where you are supposed to login.
At the login screen I'm greeted with the choice of user "Other" where I have to manually enter at username and password.
The problem is that I have not created a user or set any password, and "root" as user and "toor" as password doesn't work.
I reinstalled Kali and got it working, I did it like this:
- My friend installed Kali on his USB-drive, using normal install process inside his Linux OS
- We plugged his USB into my Macbook and booted from it
- I plugged in my USB which I wanted Kali Live on
- Using my friend's Kali Live (that we booted into) we opened the terminal and used a command called "dd" which copies everything from one location to another. Done!