I found the same bug in Kubuntu Desktop  Lucid Beta 1 amd64

md5sum: 274da210f5ccb02773f34ea70debbfac
syn date: 2010-03-20

errror:
stdin: error 0
/init: line 7: can't open /dev/sr0: No medium found

mount: mounting /dev loop0 on //filesystem.squashfs failed: input/output error
can not mount /dev/loop0 (/cdrom/casper/filesystem.squashfs) on 
//filesystem.squashfs

-- 
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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