Comment 1 for bug 606812

There are two things that I've seen cause this kind of problem before:

1) Not enough or bad memory. Some parts of the install actually need more memory to complete than the running Live session does, and since it can't swap to disk at that point, the process fails. This can even be caused by bad ram, where you don't end up using the bad portions until the extra memory is required during the install. This is by far the most common cause of this error.

2) Bad hard drive or disk controller. Since you don't encounter any errors during the Live session, it could be that the problem isn't encountered until it tries to write to the hard drive. I've seen this a few times with failing drives, and even once where the IDE controller on the motherboard was shot, but everything else worked.