Trying to install with 2008-r1 amd64. I can enter installer but it appears to hang at enter root password. Changing to virt console 1 I can see scrolling squashfs read errors. Ran Memtest86 over night- no errors Verified iso check sum and burned another cd - same problem. Reproducible: Always Steps to Reproduce: 1. Boot from live cd 2. Partition 3. Actual Results: get squashfs errors, cannot enter new root password intel dg35ec, core duo 8200
Have you tried different livecd? I've got such problem while having broken cd-rom device.
Swapped out cd player. That seems to have been the problem.