Apparently, newer versions of Ubuntu have the "loop" stuff compiled into the 
kernel, and not longer as a module:
http://ubuntuforums.org/showpost.php?p=7313153&postcount=7

A quick search in my Xubuntu 9.04 Jaunty Jackalope install shows no signs of 
the loop module:
$ sudo modprobe -l | grep loop
kernel/drivers/block/cryptoloop.ko
kernel/ubuntu/dm-loop/dm-loop.ko

So, it still looks like there's a bug in the hd-media installer.

-- 
hd-media installer fails to install from ISO media
https://bugs.launchpad.net/bugs/480368
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