Evan, I have been able to reproduce this issue using a regular 10.10 and
11.04 Beta Live CD. The problem is still present in natty (ubiquity
2.6.9).

The action of installing to a USB disk can only be done from the
advanced partitioning screen. If you use the automatic or "smart
installer", installing to sdb will install the MBR to sda without giving
an option to change. After a reboot the MBR will boot from the internal
drive and unless the USB drive is present GRUB will fail. Booting from
the USB stick will fail as there is no MBR on that disk. This is a major
problem as USB creator is nice but does not offer all the possibilities
as a full installation on an external drive.

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https://bugs.launchpad.net/bugs/684292

Title:
  Installing to USB drive (sdb), writes MBR to internal drive (sda)
  without warning or giving option to change

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