Ye i always run --g 1 (gpu threads 1).
Might have to slip in one setup with an SSD hard drive with Ubuntu on it instead of using a USB pendrive, and see if that makes a difference.
I'm convinced Ubuntu is grabbing all the ram for itself somehow because it's running off USB, but i'm not that familiar with Linux so i don't know where to control/reduce what it decides it will reserve for itself.
Certainly sounds like software/settings issue.
Try using BAMT on that USB stick.
MapleSyrupGhost's guide:
http://www.bitcointrading.com/forum/linux-distros/bamt-version-0-5-easy-usb-based-mining-linux-with-farm-wide-management-tools/msg1835/#post_lazylitecoinI've had no issues using this and usually can have a rig setup and installed in about 15 minutes.
I like to use xrdp to remote in from windows, install it like:
apt-get install xrdp
Remember to change the default password in bamt, otherwise you wont be able to remote in.
Good luck!