Is this a safe method for cold storage?
It sounds like a lot of hassle to send bitcoins because you have to re-install you offline armory each time. Also, the fact you're trying to do it on a live CD tells me you likely don't have an air-gapped machine. If you think your wallet won't "touch the Internet" in such a case, think root-kit. I would advise against this. 

Instead, get a cheap Raspberry Pi (disable the Ethernet) and use that as your offline wallet. If you encrypt the wallet and generate your paper backup, your coins will be very safe, (provided you don't lose your paper backup) and will be less of a headache to access your funds.