Actually, with a bit more testing, the issue is not that there isn't
space but that the boot partition isn't writable, or at least writes
don't persist from one boot to the next.

It is starting to sound like this is just a fundamental issue with the
livecd environment, and that installation of -fglrx and -nvidia in
livecds is just not a supportable option at this time.  So I guess
Jockey should be configured to not permit the user to do this (bug
#685017).

** Summary changed:

- initramfs-tools failed to install/upgrade, due to all space on usb key 
reserved for persistent storage.  No space left to write initrd or vmlinuz.
+ initramfs-tools failed to install/upgrade, due to not being able to write 
initrd or vmlinuz.

** Changed in: usb-creator (Ubuntu)
   Importance: Critical => High

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https://bugs.launchpad.net/bugs/562312

Title:
  initramfs-tools failed to install/upgrade, due to not being able to write 
initrd or vmlinuz.

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