I just experienced a similar issue today with the new 1.25, just cannot get the install to find the usbscsi.device "DU0" after wiping the pendrive. Funny as it worked on an earlier version with my laptop, 1.21 I think...
With that version, I was able to install to the same pendrive quite easily, but could not get the networking online. So.. I wiped the pendrive to try out 1.25.
Don't get me wrong, this kind of thing is bound to have setbacks... From what I have seen, this still is a pretty amazing OS when run from a hard drive. The USB install was nice because I did not want to trash my Ubuntu machine, and I found it outperformed a machine running in VirtualBox.