I don't know where I saw the version 1.0.8, must have looking at something else.
If I create the UBCD4WIN on Vista64, yes I do still get the error. I don't think the problem is the UBUSB program as I still used that to format and copy the files generated by UBCD4WIN to the USB drive. I ran UBUSB.exe in the Vista environment. I think its the files generated by UBCD4WIN in the Vista environment that cause the problem. It does seem odd that a bootable CD created this way works fine but a bootable USB drive does not. Maybe I'll try it again running the entire process on Vista just for grins .
The system I have is the HP Pavilion Elite Intel Quad Core Q6700, 2.66 GHz, 6Gb RAM, Vista 64 bit operating system.