I just ran into how to recover saved /home data from version 8.2 overlay. What I did is to run knoppix 8.6 from iso, opened my reiser encrypted partition as enc to mount sdb2. Then cp'd /home, /etc and /root to a tmp folder in hdd. I flashed 8.6 to same usb-flash, since it didn't allow upgrade, i erased everything and started over. Now, I tried to do the same to copy back my old folders, bud it seems that some old files are coming in the way, and the desktop doesn't behave normally, so I erased everything again.
At this point: 1) How to proceed to put back /home in my new encrypted partition (I'd rather keep same settings as before)? 2) is the upgrade image working in flash-knoppix, and if so, how much additional space should there be in the fat partition to make it happen? that is, without formatting or creating a new overlay partition.
I've been searching for backup, but they mostly were focused on img or aes files.