Why didn't this demo install of Ubuntu work?

Somehow you have incorrectly made the livecd/liveusb. The error pertains to the boot loader not finding the Ubuntu files...

Use LiLi on windows to make a live USB of Ubuntu.
Www.linuxliveusb.com

BTW "demo" is a bit of a misnomer. A livecd/liveusb is a full (compressed) Ubuntu environment contained on your USB/CDROM
 

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