I had exact same issues with kingston 4gb and managed to fix it by doing two things:
1 - I wrote the bamt img file to usb using dd from command line. making sure that the write speed was not too fast for the usb - these Kingstons seem to have a pretty crap write speed. You do this by making sure NOT to specify any BS= parameter at the end of the dd command
2 - I had been plugging the Kingston into a usb 3.0 port and this also did not work. It must be a usb 2.0 port
These combined fixed it for me.