agreed, it's alot easyer to use a USB if you got one...
i dont..
I didn't either. Stopped by Microcenter on the way home a couple days ago and picked one up for $7. Should be $10 or less at Walmart/Target/etc
But I can't choose a USB-drive as a startup disk no matter what boot loader is on there...
Sounds very frustrating. You're positive you chose GUID partition table when you formatted it to Mac OS Extended (Journaled) filesystem? I think I've seen some posts about certain brands having trouble with some systems.
Just as a datapoint; Microcenter store-brand 8GB flash drive. Booted 2010 MBP13 and installed. Also boots 2011 MBA13.
Cheers.