After some really constructive feedback and requests, I went back to the build process last night and re-ran the Chromixium 1.0 build using xorriso (rather than mkisofs) and added in hybrid boot support. What that means is that you can now quickly and easily create a Live USB using the dd command (in Linux):
dd if=Chromixium-1.0-i386-hybrid.iso of=/dev/sdx bs=4M
Where /dev/sdx is your USB device.
This is now the default download on Sourceforge:
The ISO still support all other boot methods including transfer to DVD or USB via Unetbootin/LiLi etc…
The one caveat comes by way of an unfixed upstream bug in Plymouth/Upstart. When you shutdown the live system you should see a message “Please remove the live CD from the tray and press Enter.” This message doesn’t appear, so it looks as if the shutdown is hanging. Press Enter anyway and shutdown will complete (or just power down manually).