I broke down and put a DVD drive into that system and it worked.

I am still convinced the bootloader that is written to the USB is
incompatible with our motherboards.

Like I said in the original post the forum thread covers all the things
I've tried (thanks to OldFred for many of the ideas).  The USB works
fine once ubuntu boots in both Natty and Maverick.

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

Title:
  Bootl fails from USB stick

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