Yes I have had this problem for weeks with multiple natty iso's that do
work with VirtualBox.

I have also used these same USB sticks in my laptop and brought up
LiveCD.

I also have the same problem with a Maverick and a Lucid install.

I am pretty much convinced that the bootloader that is written to the
USB stick is incompatible with the USB controller on that motherboard.

I have 2 other systems with that motherboard that I built for other
people that have the same issue.  It's just that this system doesn't
have a CD/DVD drive yet.  I just received one yesterday.

The 2 other systems are going away next week so if there's anything I
can test let me know.

Joe

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https://bugs.launchpad.net/bugs/742862

Title:
  Bootl fails from USB stick

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