I can confirm that this still exists in Ubuntu 14.04 with all updates
installed as of today May 1st, 2015. The bootable USB drives I create
with usb-creator-gtk work fine but I still get the "failed to install
bootloader" complaint. This is not a good look for an LTS one year in as
this is a key part of sharing and installing Ubuntu.

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https://bugs.launchpad.net/bugs/722019

Title:
  Failed to install the bootloader

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