This bug was fixed in the package casper - 1.248.1
---------------
casper (1.248.1) maverick-proposed; urgency=low
* More fixes to the USB update-initramfs shim (thanks, Evan Dandrea;
LP: #557023, #591207):
- Make the shim a proper executable in
/usr/share/casper/casper-update-initramfs and symlink to it if
necessary at boot time, so that new versions of this shim are
automatically installed when casper is upgraded.
- Only copy each of $bootdir/initrd.img and $bootdir/vmlinuz if they
exist (for example, initrd.img may exist without vmlinuz if we're
running off a fresh live USB stick and the kernel hasn't yet been
upgraded).
-- Colin Watson <cjwat...@ubuntu.com> Thu, 20 Jan 2011 14:34:15 +0000
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https://bugs.launchpad.net/bugs/591207
Title:
Casper's USB update-initramfs shim should look for initrd.img in /boot
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