I'm getting the same error message with jaunty-desktop-i386.iso (alpha4), 
selecting the install option, right after the desktop is loaded. But everything 
is unresponsive and I have to do a hard reset.
Not running in a VM, checked the ISO for consistency.

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Gusty Beta: error on startup. "Internal Error" "failed to initialize HAL!"
https://bugs.launchpad.net/bugs/146812
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