I'm not too familiar with LinuxLive USB Creator, so I can't speak on that, but...
Have you tried UNetbootin to install the .ISO onto the USB drive?
Even ISO's that I have had issues getting to boot properly from a USB drive (like Hiren's BootCD), I have gotten working with UNetbootin. And, it already has certain tested and known good images for many of the linux distros available from within the application to download and install directly on the USB drive.
HTH. Let us know.