I just created a Kali 1.0.6 live USB using a tool called "Mac Linux USB Loader" and everything seems fine up until the point where you are supposed to login.
At the login screen I'm greeted with the choice of user "Other" where I have to manually enter at username and password.
The problem is that I have not created a user or set any password, and "root" as user and "toor" as password doesn't work.