OpenSuse 11.1 Live USB with GRUB boot

I am using Grub to make bootable usb Drive. I have three partitions on USB key. Two are DOS partition of 60 MBs and can be boot up separately with Grub boot menu in the third partition.

1.First partition- DOS, syslinux configured for Offline Windows NT 2K XP password Administration
2.Second Partition- DOS, Windwos 98 DOS systems for Ghost, Partition magic, DOS network boot
**3.Third Partition **- Ext2, the GRUB boot system

I have copied OpenSuse11.1 liveCD to the third partition and followed all changes including initrdud as in How to Make openSUSE 11.1 LiveUSB | Spirit of Change .

I get the following error:

cddev /dev/sda1: /dev/sdb1
–—> Mounting live boot drive …
–—> Couldn’t find Live image configuration file
–—> ShellException: providing shell …

The Grub menu.lst contains:
title OpenSuse 11.1 Live
root (hd0,2)
kernel /boot/i386/loader/kernel root=/dev/sdb3 kiwidebug=1 ramdisk_size=512000 ramdisk_blocksize=4096 splash=silent showopts
initrd /boot/i386/loader/initrdud

Any suggestion will be highly appreciated.