custom fedora on usb - boot issue

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http://forums.fedoraforum.org – A custom image of Fedora 6 was built on a USB stick of size 2GB. The size of the image is 546MB and i need to build the image on a 1 GB USB stick. -The partition on the disk is bootable and I have a grub bootloader - BIOS is configured to boot from the USB stick. The same set of files are copied to the 2GB usb sticks and the 1GB usb sticks. The system boots out of the 2GB Usb disk but does not boot from the 1GB usb sticks. I am not sure if this issue is related to the usb stick, which i dont think so. I tried it on a different USB stick of size 1GB and it does not work as well. (HowTos)