Debian Live Manual's Tutorial #2 fails to boot from menu

[Ed E <eddy_drawde@yahoo.com>]

I built "Tutorial 2: A web browser utility" from Section 16.3 the
Debian Live Manual dated Mon 21 Nov 2011 01:14:20 PM EST. I build
the image on 2/17/12. It fails to initialize from the boot screen
prompt of "Live". It generates a beep, but nothing else. Both
of the "Other options" work fine. The same problem exists when
the ISO is written to a CDR and when written to a USB stick.

Hitting the TAB on "Live" shows
/live/vmlinuz initrd=/live/initrd.img boot=live config
Note that the ISO doesn't have a "vmlinuz" or "initrd.img" in
the /live subdirectory. I has:
vmlininiz-3.2.0-1-486
initrd.img-3.2.0-1-486
and
vmlininiz-3.2.0-1-686-pae
initrd.img-3.2.0-1-686-pae
If links are required they weren't generated.

I tried the fix specified in
http://lists.debian.org/debian-live/2011/11/msg00075.html
but the links were not generated by live-build in the newly
generated iso.

I used the following for the build:
live-build 3.0i~24ubuntu1
debootstrap 1.0.37
live-config not installed
live-boot not installed

Build system (uname -a):
Linux XXX 3.0.0-16-generic-pae #28-Ubuntu SMP Fri Jan 27 19:24:01 UTC 2012 i686 athlon i386 GNU/Linux
Same processor used for testing.

Thanks for your help.