@sanji: Different possibilities exist depending on the machine you're trying to boot on.
1) If the machine has one or more storage devices (hdd, other usb drives, etc.) "sda1" may rotate.
2) If the machine is x64 capable and you're launching Xvesa, it doesn't work.
If your pendrive is being used entirely for TC, I'd recommend a standard frugal install which will assign the boot code tce=UUID="something" for you and if you add the boot code home=UUID="(same as tce)" you have your "Personal Storage" tended to as well.
To get up and running with a general desktop:
tce-load -wi Xorg-7.7 Xprogs flwm_topside wbar alsa
Afterward, run tce-ab and Search for the word firmware to see if your specific video card is listed (such as ATI/AMD Radeon video cards require firmware-radeon extension.) This doesn't cover ALL possibilities, but many which are "required" by Xorg. Next, run a search for "graphics" and repeat.
If you don't need any of these items (or need and installed from the list) now type startx and if everything was successful, you should be on the desktop after a couple seconds. If it lasts more than 5 or so seconds you'll likely be told wait-for-X failed and if lucky, why. IF SO, add the boot codes debug and syslog to open the options for finding out why X failed.