Forgive the double post but I think it is worth repeating.
I can provide you with all the information I am able. Please forgive me for being remiss in doing so before.
I have an Xbox 360 Elite bought in early 2008, according to Wikipedia that would make it an Opus motherboard. I am using the 120gb hard-drive that came with the console.
I have run the game with a USB stick configured for 360 storage connected to the console (my friends bring their profiles to my house in this manner) and tried running it without any storage but the hard drive connected. The error occurs at the same points no matter if a USB is connected or not.
My save is stored on the 120gb hard drive. In an attempt to problem solve I have moved my profile, the game and the save to a USB stick, removed the hard drive and attempted to play the game from there. The error occurs at the same point.
The only other device that remains connected to the console is the Xbox 360 HD-DVD drive. I have however disconnected that from the console and tried to play the game but issue persists anyway.
Note that another profile on my console has been able to play the game through to completion without this "Storage Device Lost" error.