This bug was fixed in the package casper - 1.230
---------------
casper (1.230) lucid; urgency=low
* Don't save the hardware clock on live CD reboot; we used to do this in
the sysvinit world, but it regressed when we switched to Upstart
(thanks, Norm Pierce; LP: #436535).
* When running update-initramfs on writable media, update initrd.lz rather
than initrd.gz if it's present, and make the update process a bit safer
while we're there (LP: #489736).
* Handle toram and todisk=DEVICE options on command line (LP: #526305).
* Policy version 3.8.4: no changes required.
* Convert to source format 3.0 (native).
-- Colin Watson <cjwat...@ubuntu.com> Tue, 30 Mar 2010 11:41:24 +0100
** Changed in: casper (Ubuntu)
Status: New => Fix Released
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Kernel upgrade does not update initrd.lz on a live usb
https://bugs.launchpad.net/bugs/489736
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