Hi Charles,

> I normally use mkfs.vfat but used 1 & 2 below from
> earlier attemt to get usb directly bootable.

Ah ok. Can you please retry with ext3 filesystem?

> Is their a debug=? option that would save the detailed
> logs on successful boot?

If you're booting with the debug boot option (being debug=vc or debug=1) then
the logs should be available as /var/log/live.log or so after booting finished.

By the way, don't worry about the screen capture for now, because the
issue seems to be related to the vfat file system according to your logs.
Let's see whether it works for you with ext3 (because it does for me).

Thanks,
regards,
-mika-