FWIW, I can confirm this operation using USB2 and nUbuntu 8.12-beta.
From the sytem running the 8.12 LiveCD, I was unable to build a persistent bootable USB using the menu tool, the process hung. I was able to build a non-persistent USB using the same method.
I was able to build a persistent bootable USB using a process from the ubuntu Wiki. I also noted that the copying of the casper directory was noticeably faster than the successful non-persistent .
FWIW, I can confirm this operation using USB2 and nUbuntu 8.12-beta.
From the sytem running the 8.12 LiveCD, I was unable to build a persistent bootable USB using the menu tool, the process hung. I was able to build a non-persistent USB using the same method.
I was able to build a persistent bootable USB using a process from the ubuntu Wiki. I also noted that the copying of the casper directory was noticeably faster than the successful non-persistent .