The Fedora 12 graphical installer requires at least 384M of RAM. If you have less, it automatically does a minimal text-based install (a small fixed set of packages without offering options for additional ones) which is what you got. The confusion regarding the install discs saying i386 is common. The i386 refers to the basearch (which includes subarches i386, i486, i586, i686). F12 requires the i686 subarch. The Live images are labeled i686, but the Install images are labeled i386, even though the supported hardware is exactly the same. Many people including myself have asked for the Install images to be labeled i686 as well in order to avoid exactly this kind of user confusion. The developers have a general rule, however, that images should be labeled by basearch instead of subarch (not a requirement, obviously, since the Live images don't follow it). I believe (someone correct me if I'm wrong?) the purpose was to avoid the extra work of changing the image name when the subarch changes. If that's true, it doesn't apply here, since this particular subarch will never change again (there will never be an i786) so i686 is now and always will be the only subarch that F12 and above ever support. In any case, even if there's some benefit to using i386 in the name during development, it would be trivial to change it to i686 at release time.
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