Hello Colin,

Unfortunately this is not a bug and there is a proper workaround for
this.

1) Click on "Try Ubuntu"
2) Open usb Creator
3) Create a bootable USB drive based off the LiveCD

I would suggest that you try this. Another possible workaround would be
to install Ubuntu to a USB drive using ubiquity and at the last stage,
click on advanced and make sure the mbr/bootloader is installed on the
USB drive.

** Changed in: usb-creator (Ubuntu)
       Status: New => Invalid

-- 
place usb-creator on live-cd menu
https://bugs.launchpad.net/bugs/577767
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