I have found this too.  Install 7.10 onto USB device (either flash key
or disk) on a machine where there already exists an OS on first IDE.
Install to the USB device works just fine until almost completed when
GRUB, usually complaining first about cylinders on the USB partition
being more than 1024 from start, scribbles over all over the MBR in the
IDE device (and possibly the remainder of the first track too).  The
installed Ubuntu won't boot and neither will XP anymore.

Install to USB should not write to any IDE drives at all.

Workarounds work just fine (I used Syslinux) but if neither Ubuntu or
Windows boots then you can't read them!!

Please see reference: http://mirror.href.com/thestarman/asm/mbr/GRUB.htm

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Installed ubuntu on USB drive and i will not start up
https://bugs.launchpad.net/bugs/152305
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