Until this post I didn't realize it wasn't going to orbit Earth in roughly the same spot as Hubble -- it's going to be roughly 4 times further away from Earth than the Moon is, orbiting L2!
Basically, the rocket doesn't just fire in a straight line away from the Earth all the way into orbit. It starts arcing very soon into the ascent, and the thrust is nearly parallel to the Earth's surface for much of the journey.
http://forum.kerbalspaceprogram.com/threads/68502-WIP-Princi...
While Kerbal Space Program's physics simulation doesn't have Lagrange points, you can get a pretty good feel for how they work by performing any kind of in-orbit rendezvous.