@Takkat first, I used my main ubuntu OS's Disk Utility, and for my second (and equally failed) attempt I used the tool within the installer on the VM. (The "something else" step)
I did the same thing twice, with only a couple of changes to the steps, but I followed the answer you gave (http://askubuntu.com/questions/16988/how-do-i-install-ubuntu-to-a-usb-key/54388#54388)