Hmm, how do you gather that?

To me it looks like a case of the device mapper having changed the
order and number of arguments. Not as a visible change in the
arguments to the 'dmsetup' executable mind you, but in how 'dmsetup'
communicates with the device mapper {kernel module,library}.

"Anand", could you try 'dmsetup --version' on both the LiveCD and your
box and see if module and library version numbers match up?

I don't know how to get the version of the 'dmsetup' executable
itself, but you could try just cp'ing the one from the LiveCD.