Glad it worked (mostly). You could potentially put a swap partition on the usb drive, and have extra memory (make it aroung 512MB)... not terribly sure if the live environment will use it.
Are you using the terminal to install? Every program you open eats up more memory, and you could Ctrl+Alt+F1 Then you could even stop lightdm and install hfsprogs.
Code:
sudo service stop lightdm
I have had to stop lightdm to add in an xorg.conf to make the graphics not so psychedelic, so I know that works.
make sure you don't have any programs open, and install it from the command line
Code:
sudo apt-get install hfsprogs
Then restart lightdm
Anyway this is worth a try
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