The live CD image is supposed to work on USB sticks too. I've looked
into your syslog and I can say that my installation crashed just after
the nvidia warnings too.
In my bug (I've marked my bug as a duplicate) there are two syslog files
attached for the installation with/without updates (crash/no crash).
I don't have an empty CD, so I can't confirm that it works with the
updates from a live CD.
** Changed in: ubiquity (Ubuntu)
Status: New => Confirmed
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https://bugs.launchpad.net/bugs/741962
Title:
install crashes after downloading updates
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