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My first thought is that the USB installer is not prepared properly.
I would certainly try redoing that. If you are booted to the Snow Leopard DVD, open Disk Utility, and erase the USB stick. Make sure the partition map is GUID (you can change that under the Partition tab/Options), and erased/formatted for Mac OS Extended.
Then, click on the Restore tab, and drag your Snow Leopard installer DVD into the Source line, then drag the USB drive into the Destination line - and click the Restore button. The restore process might take anywhere from 5 to 25 minutes to finish, and should give you a proper bootable installer flash drive.
Thanks.. I will try that when the new snow leopard disc arrives. However, if the new disc solves the install error, hopefully I will be able to install from the disc to the ssd without issue. Will keep thread updated on progress.
 
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