You can try to create it manually here: http://www.password-reset.com/create-usb.php
See if that helps.
Or, you can also try the manual method above, but use the alternate DOS files here: http://www.password-reset.com/downloads/Alt_DOS_files.zip
When at the step to browse to the DOS files, browse to the alternate files above.
If that doesn't work, it's possible that it's just not compatible with the system you have unfortunately.
Let me know if doing it manually helps.
Also, is USB your only choice? Do you have a CD drive? Sometimes USB is just too finicky for some systems. It's not as reliable as CD/DVD.