All you have to do, is use a disk image utility to write the unpacked raw disk image (the .dd file), I use dd, to write it to the USB stick. 512 meg minimum.
shove the stick into the unit, turn it on, let it flash, when it's done, remove the stick, let it boot, enter network information, done.
You must configure your network exactly as required by LinuxMCE or it will not work.
-Thom