I submitted a recurring bug for live-initramfs here :
I can't boot over usb with a binary.iso image set up on usb device: I've
got busybox, unable to find squashfs, /dev/sde not found ...
I have also a problem of loop1 when I used live-helper to create lenny
binary.img from Ubuntu Hardy System. The result is that I cannot mount
binary.img to check it as I've got an error from the mount command
"filesystem not identify" (something like that) or either an error when
I did specify the filesystem in the mount command.