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I got a solution. After the stick has booten up, at the beginning of the installation, put it out then it will work.
It seems like something goes wrong, if the stick is in the revo during the installation.
Maybe with Grub.
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I fought with this issue for over a week before I figured out what was going on. I think this is a bug in the Lucid mini installer. Grub gets installed to the wrong location (usb drive), because the USB stick shows up as sda1. I ended up installing from a USB CD-Rom to get things working. Personally, I think bootloaders are a real pain, especially GRUB. It doesn't seem to like things on some Atom/ion based machines. I installed Ubuntu Netbook Remix for a friend at work on his son's Compaq Netbook and I had to manually edit the GRUB config just to get that thing to boot.
-hogfan
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2010-10-15, 14:39
(This post was last modified: 2010-10-15, 14:43 by vikjon0.)
Run the install in expert mode.. say yes to install grub2 and no to install bootloader then input /dev/sdX for manual selection of destination for bootloader. (excute shell & fdisk -l to know.)
EDIT: Bug? perhaps stupid but not a bug since the USB IS the first HD and the intention of the installer is to install to first HD.
EDIT2: In the desktop installer you just click advanced to select HD. I guess they assume people running minimal can handle this, which would perhaps be true if xbmc did not use it for xbmcbuntu.