USB booting :: usb install issues?

i am working with a sans cruzer micro, 256 meg flash drive. the laptop is a fairly new toshiba. the options for boot devices are "hdd", "cd rom", "lan", and "fdd" << flash drive i guess?...

ok, i burned the iso to cd. i boot from cd. loads, detects flash drive etc etc. comes to whatever the win manager is that is definitely not x-windows :P --- hey, 50 megs who can argue with that for a complete os?....

i figure files copied etc. i go to shutdown. shutsdown. console says shutdown. nothing happens to power down. hit the laptops power down button and the laptop restarts, not with the usb but windows .

... i use windows to browse the usb drive. empty .. what am i doing wrong?

any help would seriously be appreciated.

original here.