http://www.pendrivelinux.com/2008/10/06/usb-ubuntu-810-install-from-
windows-non-persistent/
have you tried to use the info on this page to get grub working , this method
works for me with usb drives 4GB drive I used
sandisk branded used
** Changed in: usb-creator (Ubuntu)
Status: New => Invalid
** bug changed to question:
https://answers.launchpad.net/ubuntu/+source/usb-creator/+question/48417
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"Create a USB startup disk" does not create bootable USB sticks - GRUB Error 17
https://bugs.launchpad.net/bugs/285713
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