I have confirmed this. I get the same result every time when running
usb-creator  0.1.7 on Intrepid to create a bootable Ubuntu 8.04.1 LTS
usb stick. I've tried creating both with and without allocating reserved
extra space.

The system starts too boot and then, within a few seconds, I'm stuck at
an (initramfs) prompt. It appears to be a busy box prompt. I'm going to
try creating an intrepid beta boot disk to see if the same problems
happen.

-- 
busybox with (initramfs)
https://bugs.launchpad.net/bugs/276822
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