Have you tried this with current usb-creator and the release candidate?
This sounds like bug 234185 which we've fixed. (However, note that it's
currently broken unless you enable persistence.)

If you aren't using usb-creator, then boot with cdrom-detect/try-
usb=true (with a current image, later than beta).

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Problems installing alternate installer on usb drive
https://bugs.launchpad.net/bugs/287863
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