Hello,
I reproduced this issue on my Desktop. (with the Jaunty Desktop iso and a 2Go 
USB stick)
In my point of view, it is a hardware issue, as :
With my Desktop [AMD64 + HardDrive S-ATA] ,  I reproduce BusyBox every time.
With my Dell Laptop : Never got any issue with the same USB stick.
Note : the workaround worked for me too with the Desktop : The USB Led stopped 
flashing just after the splash-screen. then a USB hard reset makes the USB-Live 
work.

Thanks all.

-- 
Ubuntu 9.04 beta desktop fails to boot from usb-stick
https://bugs.launchpad.net/bugs/350946
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