I Try to write howto about livecd .. this part explain the "boot process".
Introduction
As you know , MCNLive is a LiveCD based on Mandriva with the mklivecd scripts. To create .iso file, mklivecd use "mkisofs" ( cdrecord project ) and "isolinux" ( syslinux project ).
* mkisofs is used for premastering iso9660 filesystems which are used on CDROMs.
* isolinux is a boot loader for Linux/i386 that operates off ISO 9660/El Torito CD-ROMs in "no emulation" mode.
Ok , now we have a nice .iso file to burn on CDROM. But what's these files inside and their utilities ? Take a look ..

Boot Process
When booting from a LiveCD's boot process is as follows:
1. the BIOS loads itself into memory and executes. you must set BIOS to boot from CD. (--> loads the MBR from CD)
2. ISOLinux is the bootloader. ISOLinux will load the initrd.gz and the kernel image and transfer control to the kernel.
3. Now, linuxrc is a script (initrd.gz) that the kernel will execute as the first process. It does a number of things.
For Eg. It first loads driver's module, searches cdroms for the compressed filesystem image (livecd.sqfs), mounts it, etc ...
When the linuxrc script finishes, /etc/rc.d/rc.sysinit is run.

4. We are now at next stage of the boot process. livecd.sqfs is mount as "real" filesystem and things start as "normal" mandriva boot process.
Visual representation

this is explained correctly ??
David
MCNLive Boot process [ html ]
[EDIT] Here some useful links
From Wikipedia : LiveCD , BIOS , ISO9660 , El Torito , ISOlinux , MBR , Initrd , SquashFS , UnionFS