Catalyst failed to create livecd-stage2 because it cannot find /etc/make.profile ("no ${ARCH} defined" error). During the livecd-stage2 step, a symlink from ../usr/portage/profiles/default-x86-2004.2 to /var/tmp/catalyst/tmp/default/livecd-stage2-x86-20040905/etc/make.profile was created, but the portage snapshot defined by livecd-stage2.spec was not unpacked to /usr/portage inside the chroot, so catalyst couldn't locate make.profile.
Created attachment 39069 [details] livecd-stage2-x86-20040905.spec used livecd-stage2 specfile
Created attachment 39070 [details, diff] a patch to catalyst 1.0.9 to fix the problem
fixed in CVS - try building from a clean livecd-stage1 and see if it works please