No, Ubuntu will not do that.  In fact, I did not know that Knoppix would either.  Puppy and one or two others will.  That said, you cound use Startup Disk Creator to install the XBMCubuntu on a stick and slide the Persistence Slider all the way to the right.  That will give you space for saving settings on the stick.

On Wed, Feb 6, 2013 at 12:02 PM, Michael Havens <bmike1@gmail.com> wrote:
XMBCbuntu works from the live version. I knew a guy in Phoenix who used to have a knoppix disk loaded in his computer and he ran knoppix live off of his computer and it would save his settings and stuff. Will ubuntu do the same thing? How would I go about doing it?
:-)~MIKE~(-:


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