USB booting :: notebook tries to boot from usb key but fails :(

hey all
i'm attempting to get dsl booting from a 512MB usb flash drive.
booted into dsl using the live cd and used "Apps>Tools>Install to USB:HDD" to set up the drive on sda. this process completes fine with no errors and it's when i reboot that i encounter the errors.

with the drive setup by dsl:
at boot the drive hangs displaying
"SYSLINUX 2.04 (Debian, 2003-0606) Copyright © 1994-2003 H. Peter Anvien"
and goes no further...i don't even get a prompt.

so i downloaded the latest version of syslinux (3.11) and replaced syslinux.cfg using the command "syslinux.exe g:" in xp.
when i try to boot now i get the message
"could not find kernel image:linux
boot:"
now i'm not an expert at such things but i tried a few commands and the only one i had partial success with was typing "linux24" at the prompt.
this starts to boot (and my happiness levels soared) but after a few seconds halts with the error...
"VFS: Cannot open root device "" or 03:01 please append a correct "root=" boot option
Kernel panic:VFS:Unable to mount root fs on 03:01"

any help anyone could give would be much appreciated. i've been trying to get this working for days and am close to the end of my tether i could be doing something very stupid and am blissfully unaware of it. is the newer version of syslinux the way to go or are there other routes to take?
cheers