BTW: When I read the original bug more carefully it looks like someone is 
trying to install the boot loader on the very same USB stick as the live CD. 
This is not what I was trying; I did the following instead:
* one SD card with Live CD
* one empty USB stick to install Ubuntu on.

** Changed in: grub-installer (Ubuntu)
       Status: Expired => Confirmed

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  Installer Crashed while trying to install grub on /dev/sdb (usb memory
  stick which live installation CD)

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