The "File not found" error is probably due to an incorrect "root=" parameter. maybe you should try editing the grub configuration by typing 'e' and set teh root to /dev/sda1 or whatever (USB drives start with sda).
Also, the ability to choose where GRUB is installed is not available in the "normal" CD. You need to use the alternate CD for this, IMO. --NV -- Edgy: install to USB drive leaves system unbootable https://launchpad.net/bugs/68070 -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs
