I a a small problem with this but now that I have worked it out I though I would share my experience with people.

First I used the "create USB startup disk" in the Ubuntu System -> Administration -> Create USB startup disk
utility that us built into Ubuntu, however this does not create a bootable USB disk...which is annoying. But after about an hour of reading around and looking into it, there is a nice little app that makes the USB bootable AFTER you put the system on the disk using the Create USB startup disk util that is built into Ubuntu.

It is located at:

http://unetbootin.sourceforge.net/

Follow the instructions and you will be able to create a "Live USB"

As I'm writing this my new HP Mini 1004 is getting updates, all the hardware seems to work with no extra drivers needed...but I may discover something as I play around more.