Here are two more posts on Ubuntuforums.org that report the same problem:

http://ubuntuforums.org/showpost.php?p=10944428&postcount=1

http://ubuntuforums.org/showpost.php?p=10977762&postcount=1

Nowadays many wish to have a server without a CD-ROM in order
to save space and electricity. Not being able to install Ubuntu server
from an USB-stick without having to resort to roundabout methods, 
is definitively a drawback.

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https://bugs.launchpad.net/bugs/778319

Title:
  Installation via USB-stick impossible

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