Ok, I narrowed down the problem.
The USB and the DVD are fine. I tried them on an old AMD HP Pavilion with Windows XP and they worked fine, I got to the green prompt and typed in startx and everything was there.
But that means that my Toshiba is somehow not compatible with BT 4, which makes me so sad! I need to be mobile.
Any suggestions on what I could do to get my laptop working or should I start a different thread about this.
So, bottom line, the USB issue is solved. This is now a compatibility problem.