Thank You for the answer.
Try "insmod usbms" (USB Mass Storage module) and "insmod part_msdos"
(Load MBR partition table module).
Unfortunatelly no luck :( `ls' command does not see other drives than hd0, which is notebooks hard drive.
On a side note, why can't you
install grub2 to the usb directly instead of using a cd to boot the
usb? It is possible.
Actually I did it, ie. boot sector of my usb flash drive contains grub.
Problem is with relativelly old machines that do not support booting from USB. Such machines usually allow booting from CD.
My idea is to put simple grub2 chainloader that chains CD grub to USB grub. That's why my concern.
best regards,
Paul