Looking at the second screen shot you posted, It looks like you
booted in recovery mode. Recovery mode requires a Google-signed
recovery image, even in dev mode.
It looks like your system _is_ properly set up to boot from USB in
dev mode. The proper procedure to do that should be this:
* Power off
* Insert your USB stick
* Power on normally (just push the power button)
* At the dev mode screen, type ctrl+U
--jrb