@Pedro, I believe that casper can only handle a 4G filesystem max (FAT limitation?) so even though it is 8Gb total the live environment can't address the upper 5-8G. So since your storage was set so large, there wasn't space to write the kernel.
Or something like that. Try reducing the size of your storage to 2 or 3G. Or maybe manually partition the 8G drive into smaller chunks.
@Pedro, I believe that casper can only handle a 4G filesystem max (FAT limitation?) so even though it is 8Gb total the live environment can't address the upper 5-8G. So since your storage was set so large, there wasn't space to write the kernel.
Or something like that. Try reducing the size of your storage to 2 or 3G. Or maybe manually partition the 8G drive into smaller chunks.