XLive CD is not intended to run on systems on which Cygwin is already installed. However, it is possible to do so, and this page outlines the necessary steps. Carefully read the page, and do not run XLiveCD if you are uncomfortable with any of the steps.
XLiveCD removes Cygwin file system mount points from the Windows registry (key HKEY_LOCAL_MACHINE\SOFTWARE\Cygnus Solutions\Cygwin) and caches them. It then places its mount points in the Windows registry key HKEY_CURRENT_USER\SOFTWARE\Cygnus Solutions\Cygwin. When the X server exits normally XLiveCD removes its mount points and replaces the originals. The mount points will not be restored if the X server crashes or if something goes wrong with the cleanup script.
If XLiveCD fails to exit cleanly, the registry needs to be restored to its original state.
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