However, Partition Manager is not able to create a new partition on the USB stick, but luckily Windows Disk Manager is.
But...
You can only create one single partition, and that is not what you need.
So although I appreciate the fact that you take the time to point out that people who do not get the partions on the USB stick working are not really worth it, you probably did not use the tools you mentioned yourself, other than GPARTED.
For any of you that are having trouble getting multiple partitions using Windows:
http://www.pendriveapps.com/bootice-partition-flash-drive-edit-boot-sector/
This tool works (up to 4 partitions).
You are welcome. And you are quite mistaken. Perhaps that is my fault for lacking details. I actually did use Partition Manager. I delete the partition which takes up the whole drive. I then create one new fat32 partition big enough for the iso to fit on. And I leave the rest blank and then follow the steps on the original post. The one that says, if you are having a having difficulty with persistence follow this link.... It walks you right through how to create the second partition with persistence. One thing it doesn't mention is having to reboot after creating the partition and creating the ext4 filesystem. Perhaps there is a command u can use to avoid the reboot, but I am not familiar with it if it does exist. Creating the second partition inside linuxcoin is the easiest way. Partition manager will only help with the first partition. You could optionally use gparted to create the second partition.
I'm not sure what you meant by Partition Manager is not able to create a new parition on the USB stick.... It absolutely can... just not ext4 partitions