This is indirectly fixed with the switch to the devicekit-disks backend.
If you are still experiencing errors when formatting, please file a new
bug (or feel free to reopen this one and attach new logs, if that's
easier for you).
Thanks!
** Changed in: usb-creator (Ubuntu)
Status: New => Fix Released
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[karmic] hangs hal on formatting volume
https://bugs.launchpad.net/bugs/411321
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