I'm almost certain that cloop doesn't need enough (virtual) memory to fit the whole image into it. I mean, as the article says, Knoppix uses cloop (TTBOMK) and with it's DVD providing far more that 4GB of uncompressed (and nearly 4GB compressed IIRC) image, how would that work on systems with "just" 1GB RAM and no swap? And I have systems with less RAM and no swap worth mentioning which happily run the Knoppix DVD version.
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