If you want to save anything on the hard drive it sounds like you wil have to do this Gill :
Q: NTFS partition
I have Windows XP installed on my computer, and the hard drive is partitioned with a single NTFS partition. When I boot up with the Puppy live-CD, the "home" file is not created on /root, so I can't have any permanent storage. Why doesn't Puppy work with NTFS?
A:
When the live-CD boots up, Puppy looks for a vfat, ext2/3 or reiserfs partition, in that order, and if found creates a 256M file on it, named "pup001". This file is actually a complete ext2 filesystem, and Puppy mounts this on /root, and it becomes your home folder and keeps all your personal files and settings. This is a very safe technique and is unlikely to mess up your hard drive as no partitions are being created or modified, just a file created.
Anyway, this technique has a problem when it comes to NTFS. Linux support for NTFS is not yet complete, and currently an NTFS partition can be mounted read-only but not written (safely) to. When Puppy boots up, if he can't find a vfat, ext2/3 or reiserfs partition, he gives up and only uses the ramdisk.
HOWEVER, Puppy version 0.9.7+ does have limited NTFS write support. That is, the Linux NTFS driver can safely write to a file if it already exists, but cannot safely create or resize a file.
SOLUTION: bootup Windows XP, download pup001.zip from the Puppy download site, unzip and save it to C:\pup001. Now reboot the Puppy live-CD and Puppy will use the pre-existing pup001 file as your home data file. Simple!
That sounds quite easy and saves having to create another partition.
The above refers to an earlier version of puppy than the current one but the FAQs page was updated this March so this version should work in the same way
By the way thats got to be the slowest site that I have downloaded from since I got upgraded to 1mb, its taken about an hour and 30 minutes