We believe that your issue has been closed by the upload of
Version 0.9.27 of grml2usb from Michael Prokop <mika@grml.org>.
The explanation is attached below

-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1

Format: 1.8
Date: Wed, 30 Jun 2010 13:10:09 +0200
Source: grml2usb
Binary: grml2usb
Architecture: source all
Version: 0.9.27
Distribution: unstable
Urgency: low
Maintainer: Michael Prokop <mika@grml.org>
Changed-By: Michael Prokop <mika@grml.org>
Description: 
 grml2usb   - install grml system / ISO to usb device
Changes: 
 grml2usb (0.9.27) unstable; urgency=low
 .
   [ Michael Prokop ]
   * [3836a71] Check for precense of grub/syslinux at startup time.
     Thanks to Eduard Bloch for reporting.  [Closes: issue855]
   * [bde7012] Mention --force switch of grub-install in debug log.
   * [1c1c18c] Doc: fix documentation regarding default bootmanager.
     (thanks Martin Krafft).
   * [bae5bfb] Bump Standards-Version to 3.9.0.
 .
   [ Ulrich Dangel ]
   * [b79a4cc] Fix error message for unintialized partition.
     [Closes: issue857]
   * [cd204ee] Fix user feedback about default flavour and
     installed flavours.
Checksums-Sha1: 
 7aebe3e18bd6c723aed4118e8b4d9d22a266e255 876 grml2usb_0.9.27.dsc
 c545f4838e997ee3619194dd65c987f69f54751d 1242201 grml2usb_0.9.27.tar.gz
 2a9a78706bf823d0709f9bd1309feb883ee4f76c 865804 grml2usb_0.9.27_all.deb
Checksums-Sha256: 
 15ac61465afc159dab6ae5b6f441474d5e62dfb7b079323652c4e8751955b2c1 876 grml2usb_0.9.27.dsc
 b8394d3217817bf4d6754a8d512725e51f4ff1eed574e4bd91b35b3db190ffff 1242201 grml2usb_0.9.27.tar.gz
 991cbee79b5498f8f79eeeb9838ec045ef37b934f6216e9e292e78bd2b4f4315 865804 grml2usb_0.9.27_all.deb
Files: 
 ed5b83e1e2d906db7680bfa7a196bcab 876 grml optional grml2usb_0.9.27.dsc
 689df8a506fce56fa564ba5a265642bb 1242201 grml optional grml2usb_0.9.27.tar.gz
 24a47d0aca2212c11aa32618da965515 865804 grml optional grml2usb_0.9.27_all.deb

-----BEGIN PGP SIGNATURE-----
Version: GnuPG v1.4.10 (GNU/Linux)

iD8DBQFMKyiG2N9T+zficugRAqALAJ4gBjlwoq8iruiBgvZIl3KNZX7drQCfXPpX
Hwhb7FcetHCWol1Of2zG6g0=
=dnWP
-----END PGP SIGNATURE-----

* Eduard Bloch wrote in grml's BTS on 20100523 / 11:26:

> IFF syslinux is not installed, grml2usb reacts not very helpful, see below.

> $ grml2usb -v
[...]
>     errread, errwrite)
>   File "/usr/lib/python2.5/subprocess.py", line 1153, in _execute_child
>     raise child_exception
> OSError: [Errno 2] No such file or directory

Good catch, thanks for reporting!

Fixed in git:

  http://git.grml.org/?p=grml2usb.git;a=commit;h=3836a71

regards,
-mika-

IFF syslinux is not installed, grml2usb reacts not very helpful, see below.

$ grml2usb -v
grml2usb 0.9.25
$ grml2usb /download/grml-medium_2010.04.iso /dev/sdc1 
Executing grml2usb version 0.9.25
Using ISO /download/grml-medium_2010.04.iso
Identified grml flavour "grml-medium".
Copying files. This might take a while....
Installing default MBR
Installing syslinux as bootloader
Traceback (most recent call last):
  File "/usr/sbin/grml2usb", line 2079, in <module>
    main()
  File "/usr/sbin/grml2usb", line 2066, in main
    handle_bootloader(device)
  File "/usr/sbin/grml2usb", line 1999, in handle_bootloader
    install_bootloader(device)
  File "/usr/sbin/grml2usb", line 698, in install_bootloader
    install_syslinux(device)
  File "/usr/sbin/grml2usb", line 672, in install_syslinux
    proc = subprocess.Popen(["syslinux", "-d", "boot/syslinux", device])
  File "/usr/lib/python2.5/subprocess.py", line 594, in __init__
    errread, errwrite)
  File "/usr/lib/python2.5/subprocess.py", line 1153, in _execute_child
    raise child_exception
OSError: [Errno 2] No such file or directory