How i managed to get the SeaTools to run on USB was to use the "HP USB Disk Storage Format Tool with DOS system files" method. Also you need the floppy version of the SeaTools, which means you need to have floppy drive at some point OR find the SeaTools floppy content elsewhere.http://www.dashken.n...ne-Package.html
When you have the working bootable USB to DOS, you simply need to copy everything from the SeaTools floppy, EXCEPT the "COMMAND.COM", to the USB key overwriting existing files. Note that if you copy the "COMMAND.COM" from the SeaTools floppy, you will get error about "Missing COMMAND.COM" or some such.
Thats it. This method worked fine for me on a Kingston DataTraveller 1GB.
PS. Decided to reply to this thread as it was one of the first ones to come up in Google when i was trying to find info about this. In case theres someone else wondering how to do this...