So I thought why not try the methods used in creating the usb installer for F12 on Amahi, and to my pleasant surprise it worked!!
Note, this guide is written for F12, but may work on other Fedora versions above. I know for F11 and below these steps are slightly different!
Note: This was all done on a windows machine running Fedora 12 in Virtual Box!
1) Plug in USB Drive, Fedora will mount this, wait until it opens the USB drive and close it. On the desktop will be an icon for you USB drive, right click and "unmount" it.
2) Open up terminal, log in as root. The following will install livecd iso to disk to carry out the procedure and will delete everything on your USB stick and format it to ext2. This assumes the usb stick is located at /dev/sdb.
Enter the following commands:
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yum install livecd-tools syslinux
dd if=/dev/zero of=/dev/sdb bs=512 count=1000
parted /dev/sdb mklabel msdos
parted /dev/sdb mkpartfs p ext2 0% 100%
tune2fs -m0 /dev/sdb1
Now you need to make sure your drive is bootable, which can be done by entering this command:
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parted /dev/sdb toggle 1 boot
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umount /dev/sdb1
You will have to make sure your ISO is in a relevant folder. Mine is assumed to be in the download folders, user is the name I defined when setting up Fedora.
Enter the following:
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livecd-iso-to-disk <path to>/Amahi-5.4-Express-2.6-Beta-x86_64.iso /dev/sdb1
This will take quite a while, so grab yourself a copy, read a book or whatever you feel like, and once done you'll be notified in terminal!
Voila, you now have a bootable Express CD on USB, to complete rest of the installation follow Step 4 onwards from this guide http://wiki.amahi.org/index.php/USB_Install
Hopefully this will work for those having troubles as well, if not then let me know.