It is the result of an outdated codebase and setup we use to build mcnlive, unmaintained mklivecd scripts which were made back then to work without unionfs.
MCC is not made to work in RAM, it tries to calculate the available space on / (on a real partition), which in our case is a tmpfs, in MCC you can ignore the warning about running out of space.
The /home and some more dirs are limited (see above). For the time beeing don't do these crazy things like copying hundreds of MB's into your RAM.
We should really move from the mklivecd scripts to draklive.