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Can you mount the ISO correctly by double clicking it?
If so, use CarbonCopyCloner (version 3.4.7 is still free and available for download here and works with Mac OS X 10.6 Snow Leopard, Mac OS X 10.7 Lion and OS X 10.8 Mountain Lion) and clone the image via Source > Restore from disk image to the USB flash memory thumb drive.
 

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Not you. Not the iso. Just tried myself. No go on a usb stick. Burns to a dvd and works. Maybe has something to do with it being an Ubuntu disc? Shows up in Start Up Disk as a foreign OS disc.
 
Not you. Not the iso. Just tried myself. No go on a usb stick. Burns to a dvd and works. Maybe has something to do with it being an Ubuntu disc? Shows up in Start Up Disk as a foreign OS disc.

yeah it has to be this. silly. I guess I have to buy an external CD/DVD writer JUST for this....
 
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