@Andreas, mount the usb disk in a different working linux installation, and look at how much free disk space there is on the usb drive itself. My guess is maybe it ran out of space while trying to create vmlinuz-2.6.37-7-generic. What % of the free space did you allocate to reserve for documents and such? If you set it to 100% then it does not leave room for system files like initrd or the kernel, I guess.
@Andreas, mount the usb disk in a different working linux installation, and look at how much free disk space there is on the usb drive itself. My guess is maybe it ran out of space while trying to create vmlinuz- 2.6.37- 7-generic. What % of the free space did you allocate to reserve for documents and such? If you set it to 100% then it does not leave room for system files like initrd or the kernel, I guess.