I've experienced the same problem with Hardy 8.04.1 Server on a Dell Poweredge 2500 when installing from an ISO CD using the server's own CD-ROM drive. Out of desperation, I installed a Promise IDE controller and connected a standard desktop IDE CD-ROM drive to its cable and booted/installed from that and everything worked perfectly. I haven't since tried reading a disk from the server's own CD-ROM drive using the freshly installed OS, so unfortunately I can't state if it's a CD-ROM or interposer problem that afflicts the OS or just the installer. Hope this is of some help diagnosing the problem. Keep the faith!
I've experienced the same problem with Hardy 8.04.1 Server on a Dell Poweredge 2500 when installing from an ISO CD using the server's own CD-ROM drive. Out of desperation, I installed a Promise IDE controller and connected a standard desktop IDE CD-ROM drive to its cable and booted/installed from that and everything worked perfectly. I haven't since tried reading a disk from the server's own CD-ROM drive using the freshly installed OS, so unfortunately I can't state if it's a CD-ROM or interposer problem that afflicts the OS or just the installer. Hope this is of some help diagnosing the problem. Keep the faith!