booting a HD install of 8.04 from GRUB on USB stick

[Dragonath]

Hello,

recently I installed a new SATA hard drive, because the IDE I have been using so far is failing (I think - it's been 2 years now). I have installed 8.04 on the SATA drive, so no worries there.
The problem is that my motherboard (chaintech zenith 7njs) can't boot off a sata drive, so I've opted for using my USB stick to boot the installation up. Should be doable, right?
Now I've been tinkering for a few days, and I think I'm on a right track, as GRUB boots up just fine with the 8.04 boot command I copypasted from the SATA drive's /boot/grub/menu.lst listed in it. It even starts booting up the linux kernel (at least that's what it looks like it's doing), however at one point it shows an error, then defaults to the BusyBox shell.

The error (I'm not sure the first two lines are a part of it, but I've added them just in case):

Check root = bootarg cat /proc/cmdline
or missing modules, devices: cat /proc/modules ls /dev

ALERT! /dev/disk/by-uuid/4a4d367a-cf21-4ca4-87 does not exist

Is there something that I should change in the USB sticks menu.lst or is there some other problem with the 8.04 installation?