I have found recently that setting up a Live USB with Lubuntu 16.04.1 and a persistent partition using the process described in the top answer to this question causes the Live USB to be unable to boot. The screen instead is blank with a blinking cursor. Has the process for creating a persistent Live USB changed since the last time I was able to get this to work in 13.10 (14.04 - 16.04 seemed to suffer from this bug)? Is there any way to fix this so that I can have persistence over 4 GB?
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Maybe the easiest solution for you is to install mkusb and let it start from the beginning. It creates a casper-rw partition for persistence automatically.
You can decide how much of the available drive space to use for persistence. The rest (of the available drive space) will be used for a usbdata partition, available also from Windows.
See these links

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