I ran in to this same problem, the issue is that BT5 uses Grub2 which doesn't use a menu.lst, instead it uses a grub.cfg file which is automatically generated using update-grub. This change wasn't taken in to consideration with the wiki tutorial and thats why its not working.
I don't know how to configure grub2 to work on a usb drive or i'd gladly give us a solution.. :/ I guess i'm going to spend the next hour or so reading up on grub2.


