Thanks for the reply, but just to clarify I mis-spoke earlier. Actually I tried a USB Hard drive which is a Memorex 8gb with a spinning Seagate microdrive installed in it.
Then I tried a Sandisk Cruzer Professional 8gb USB Flash drive (I know it's not recommended) but got the exact same results as before.
Both times debian is installed and written to the first USB partition, but it's just not booting off of it.
Is there anything that I can do to check, verify, set, whatever as to why uboot just isn't booting off the usb?
I will try a full size 2.5" or 3.5" usb hard drive, but something just doesn't seem right?