Had the same problem.
that`s not chroot bug, it might be debootstrap.
Check your "/mnt/usb/etc/apt/sources .list", when using image and file protocol.
Instead of "deb file:/mnt/iso/ubuntu edgy main", you propably have "deb 
http://debootstrap.invalid edgy main"

debootstrap? forgets repository path, thats all  .

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debootstrap can't chroot
https://bugs.launchpad.net/bugs/77589
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