If you got this bug, when you boot from USB, press F6 then edit the boot option:
#Remove this:
file=/cdrom/preseed/ubuntu.seed
#Add these:
live-media-path=/casper/
ignore_uuid

#Full sample:
append boot=casper initrd=/casper/initrd.lz live-media-path=/casper/ quiet 
splash ignore_uuid --

If you don't want to edit every time you boot from USB, you can edit this file 
in USB:
/syslinux/text.cfg

-- 
Can not mount /dev/loop1 on /cow
https://bugs.launchpad.net/bugs/492301
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