Hey Leon,
I've been trying to follow along with the steps you provided on the main OSXLatitude site, but get showstopping errors during the boot-from-USB process.
Namely, I notice the following text output:
"couldn't alloc class IntelCPUMonitor"
...and at the very end, after a few fakesmc debug errors, "still waiting for root device"
I'm using the 10.7.3 install DMG, btw.
Any advice?
System specs attached.