http://www.ubuntugeek.com/how-to-install-ubuntu-linux-from-usb-stick.htm...
A Ubuntu CD image downloaded from the Ubuntu servers or mirrors (*.iso file)
On the root directory of your USB device, create a folder “install”
To mount the USB device {
mkdir -p /mnt/disk
mount -o loop disk1.iso /mnt/disk
}
Copy the installer kernel and the initramdisk into this folder (Download source below.You need the files “vmlinux” and “initrd.gz”).
Download source for the installer kernel and initramdisk
For AMD64 Download from here ( http://archive.ubuntu.com/ubuntu/dists/hardy/main/installer-amd64/curren... )
For i386 Download from here ( http://archive.ubuntu.com/ubuntu/dists/hardy/main/installer-i386/current... )
You need to download the files “vmlinux” and “initrd.gz”.
From the installation iso image you downloaded, copy the folder “isolinux” to the root directory of your USB device. Rename “isolinux” into “syslinux”. Go inside the directroy “syslinux”. There, rename the file “isolinux.cfg” into “syslinux.cfg”.
Make the stick bootable: Use fdisk to set the boot flag,
Install syslinux using the following command
sudo aptitude install syslinux
Now use syslinux to install a boot sector on your USB device
sudo syslinux /dev/sdbX
Copy the Ubuntu CD image in the root directory of your USB device (Contents of USB you can see as follows).If you are using i386 you need to copy the complete .iso image in to the root directory of your USB device.