Run Gentoo Linux Installer (I used the gtk version), Under Kernel options select livecd-kernel. Installer does not configure the installed kernel before hal is emerged which causes hal to fail.
The livecd-kernel option does not install sources, so there is nothing to configure. It is really just a quick kernel, so you can take your time and build your own after the install.
If you want to emerge anything in the installer that requires kernel sources, you must select gentoo-sources or vanilla-sources, which will be compiled from source by genkernel.
Moving to Release Media/Installer.