I think the original bug report may be the same problem as
https://bugs.launchpad.net/ubuntu/+source/usb-creator/+bug/284085. If
the usb is using FAT32 (aka vfat) then  there is a  4 GB file size
limitation, that can cause problems when creating a file casper-rw file
that is too big. The casper-rw file won't be created but usb-creator
exits cleanly and the USB will boot up fine, but won't be persistent.

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No persistence with USB Creator in Ubuntu 8.10
https://bugs.launchpad.net/bugs/302485
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