This has nothing to do with the manner in which the USB stick is created.  Per 
comment #33, the
problem can be triggered using the original Live CD ISO mounted as a virtual CD 
to a VirtualBox
machine in which the only hard disk attached has an unexpected partition table, 
such as a full volume
BTRFS filesystem.

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https://bugs.launchpad.net/bugs/1241589

Title:
  ubuntu 13.10 unable to boot on live usb (busy box - initramfs)

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