g0ne has a good post over on his blog about hacking thin clients, probably worth the 30 seconds to read.
http://vmarve.blogspot.com/2008/03/debunk-thin-client-good-security.html
bottom line is that even if you "flash" the drive every nite or if its non-persistent you might want to make sure the "fresh" image isnt vulnerable to some old ass remote exploit :-)
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