I am a bit confused by the description.  By  "installation mode"  are you 
referring to the GRUB menu entires ? I am assuming so in which case it's 
dying(panic'ing)  very early during boot.  I would suggest the following:

1. Select the entry that refers to the "text console".
2. Edit that entry by typing e
    At this point you presented with the detailed entries which look like
   kernel$ /platform/i86pc/kernel/$ISADIR/unix -B livemode=text
   module  /boot/x86.microroot

edit the "kernel$"  line by typing e.
and append a -k
so the line looks like:
kernel$ /platform/i86pc/kernel/$ISADIR/unix -B livemode=text -k

Type "enter" and then a "b" to boot the CD.

When the system fails it will drop you into the debugger and that will provide 
us with more information.
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