Comment 103 for bug 930447

Christiansen (happylinux), problem is not in the squashfs image, but in syslinux boot loader or something related - the same Ubuntu 12.04 squashfs image starts and installs fine if GRUB boot loader is used for startup. Try Multisystem (http://liveusb.info/dotclear/index.php?pages/install ) LiveUSB creator (choose GRUB boot loader) instead of Ubuntu's startup-disk creator (which uses syslinux) and you will see the difference :)