Arafat, it's quite simple actually. Just complete the steps you'd
complete normally to run Ubuntu from a USB stick, and then replace the
initrd.gz on your USB stick with the one posted above (one is for
Ubuntu, the other for Xubuntu). That's it - bug solved/worked around :)

(The instructions were on how to create your own initrd.gz but since
other people did that for you that's not necessary)

-- 
[hardy] livecd: keyword "persistent" results in busybox and (initramfs)
https://bugs.launchpad.net/bugs/219192
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