Have confirmed this bug on both a IBM T60 and an eeePC 1000.

The T60 CPU's are Genuine Intel(R) CPU T2400  @ 1.83GHz and the eeePC
1000 is an ATOM N270 1.60GHz

I tested the Beta image and it boots fine on both machines from the same
USB stick so I know the USB stick is working and that the Beta worked.

-- 
casper USB media fails to boot: USB storage device not detected, drops to 
(initramfs) prompt
https://bugs.launchpad.net/bugs/363038
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