So, what is going on with your computer? First, have you verified the media? Unexpected behaviors could be generated by corrupted ISO images.
I've actually experienced problems like this before. I downloaded the ISOs for Severn, MD5 OKed them and they passed the installation's media check. I still got an error during install. The error occurred in the same place each time. I tried burning to new meadia, I still got the error in the same place.
Finally, I swapped CD-ROM drives with another computer and the install went fine. I've since reverted to the old CD-ROM drive and never had a problem with FC1 installation.
Cheers, Holden