From experience, I can tell you that this is most likely your partitioning.
The only way have been able to do it is using the HP Disk Formatting tool.
I dont know what they do differently than a windows formatting, but it works when I do it with their tool.
Thanks for all the help MOE-Inx, but I had to give up.
After reformatting with the HP tool, copying over the contents of the VL6 iso, and coming back to the Asus (and XP) to run syslinux, I kept getting this error message:16 bit Windows Subsystem
An application has attempted to directly access the hard disk which cannot be supported. This may cause the application to function incorrectly.
Two button choices - "Close" and "Ignore".
I chose "Ignore" but the USB stick was still not booting. (In retrospect, it may have been trying to use syslinux.com rather than syslinux.exe)
But I'm posting this from the Asus eee PC running VL6
I got fed up with all the problems with the USB method and became more aggressive; I took out the hard drive and put it into my Acer notebook (also a SATA HD). I then installed from the CD. Returned the HD and ran vasm from the tui login to redo all the hardware. It works fine.
Haven't checked wireless, webcam or sound yet but will report on that in another thread.
I wonder if we shouldn't look at packaging unetbootin so that other potential netbook users don't have to go through this frustration. Swapping hard drives isn't the most elegant solution.
I tried to package unetbootin, but it was beyond my ability.http://forum.vectorlinux.com/index.php?topic=7886.15
Unetbootin installations of VL seem to work with the eee PC :http://forum.vectorlinux.com/index.php?topic=7542.msg53515#msg53515
Thanks again MOE-Inx, its been... interesting, learning about Windows. Think I'll stick with Linux though.