Right then,
Never done this image stuff before, bear with me.
This is exactly how I did my install.
First, I located my usb stick using gparted:

Then I dd'd (as root, you can use the 'sudo' command instead) the image to the stick, you need to be in the relevant folder in your terminal.

Start up your EeePC with the stick in, press escape at the BIOS screen and choose the stick:

Choose a 'text install'

Your language

Your Location

Your keyboard

Don't load the CD drivers

Manually select a module

Select 'no module'

Put in the location of the stick (/dev/sdb in my case)

off you go!

This should be the next screen:

This is how it went for me on an EeePC 1000HC and i have duplicated these steps to be sure.
Hope this helps you.
The Monkey...