system installation - USB drive install of Ubuntu 12.04 Server fails - can't find components from CD-ROM

I'm trying to install Ubuntu 12.04 Server (32bit) on a machine here using a USB stick. I used the Universal-USB-Installer-1.8.9.4 which has support for 12.04 server to get the ISO onto the USB drive.

1. The computer boots up the installation process ok.


2. It gets through the Ubuntu language, locale and keyboard selection.


3. Then starts loading additional components. At this point it gets about a quarter of the way through then throws big error message saying:

[!!] Load installer components from CD

There was a problem reading data from the CD-ROM. Please make sure it
is in the drive. If retrying does not work., you should check the
integrity of your CD-ROM.

Failed to copy file from CD-ROM. Retry?

Retrying obviously fails as well. Have tried re-running again and installing again onto the USB but no change. Have tried checking for CD-ROM integrity errors and it breaks on this error:

[!] Check the CD-ROM(s) integrity

Integrity test failed

The

./pool/main/l/linux/fs-secondary-modules-3.2.0-23-generic-pae-di_3.2.0-23.36_i386.
file failed the MD5 checksum verification. Your CD-ROM or this file
may have been corrupted.

Have also tried the Ubuntu-Server 12.04 LTS (Precise Pangolin) daily build. No go there. Even checked the iso SHA1 hashes and they match.

Have tried LinuxLive USB Creator 2.8.11 and unetbootin-windows-575 to see if it was an image with the USB drive software but still no go.

Any ideas?

It seems there are some naming errors with the files under \pool\main\l\linux (I found false extensions *.ude instead of *.udeb there) and a MD5-Checksum error with ./install/netboot/ubuntu-installer/i386/pxelinux.cfg/default). After fixing these errors I'm able to install the 32-bit Server Edition.