I followed this instructions running Ubuntu 11.10:
http://www.pendrivelinux.com/install-grub2-on-usb-from-ubuntu-linux/
(and it worked)
Do you have multiple partitions on the stick?
Also note, that at least for me, grub2 loads orders of magnitude slower
than other boot loaders (see message on the list titled "Load speed
test? <http://lists.gnu.org/archive/html/help-grub/2011-12/msg00026.html>"
Regards,
David
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