btw the blurp in the config file in the 2007 texlive version that concerns
powerdot is the same as in the downloadable config file, so people who have
recently installed texlive don't need to replace the file.
Powerdot doesn't work though, here's the error from the log
Error: /undefinedfilename in (/tmp/altpdflatex.8161-1204154893/testPD.ps)
(where testPD is the file name).
    

I don't use texlive, but know it works with the new config.ps (as you
can also see from the responses of other people). Try reinstalling
everything.

-Hendri.