Okay, thanks for clarifying.  Yes I agree if it does this with any
amount of persistent storage then there seems to be no particular reason
to think this is a dupe of 562312.

Have you ruled out that it is definitely due to usb-creator and not just
a regular kernel or grub bug?

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https://bugs.launchpad.net/bugs/659895

Title:
  Live USB installation of Ubuntu 10.10 does not boot a second time

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