USB booting :: USB pendrive Kernel Panic
I'm also having this problem and the "fix" doesn't work, probably because "chmod" doesn't work on FAT partitions.
Anyone else have any ideas? I've been working on this for a few days now with no luck =/
GOT IT! It seems like this is a common issue, so it's sad that the solution is not documented
If you're having this issue, you need to disable USB 2.0 support in your BIOS so that your flash drive will boot up as a USB 1.x device. It's kind of sad that I've spent 3 days on this and that was all I need to do .
original here.