Give this a try...
On the usb stick open the Extra folder and mount the preboot.dmg file. Open the mounted preboot disk image in finder and delete the dsdt.aml file.
Unmount the preboot.dmg and now try booting from the usb stick
Thanks for the suggestion Andy, but unfortunately that wasnt it.
I have the feeling it's the ATI 5450 video card causing it as the crash happens right when the video mode is switching during boot up. Are there specific kexts that could cause this crash that are related to the video card?
Would Grapicsenabler=no disable those kexts ? I tried that and it still resets during boot