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Error running from usb stick: " settings could not be detected correctly"

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http://askubuntu.com – The details are that I used Universal USB Installer version 1.9.1.8 from http://www.pendrivelinux.com to install Ubuntu 12.10 onto a 4GB pendrive as per instruction on Ubuntu's website. However, after I boot with drive I am met with the following message: The system is running in low-graphics mode. Your screen, graphics card, and input device settings could not be detected correctly. You will need to configure these yourself. Pressing Ctrl+Alt+F1 doesn't allow me access and the options on the dialog box either send me through a loop returning me to the previous dialog or just leave me de (HowTos)