I have seen this happening once on my iMac DV (400MHz G3 slot-loader). The user 
account was not created, but I was able to create it manually when booting from 
the "alternate" CD in "rescue" mode. I could then get a shell while using the 
installed system as / and subsequently use "adduser" to create a user. I also 
had to use rescue mode to make sure that account was added to the sudoers file.
The same install showed the problem with the root account as described above. I 
found that this was due to the entry for "root" missing completely from 
/etc/passwd. Adding it manually resolved this.

Also, I only ran into this when I installed the machine before I had
replaced the PRAM battery (i.e. it was forgetting its date, time and
settings each time I booted). After I had replaced the battery, reset
the NVRAM and reset the hardware clock (actually using hwclock
--systohc), a second fresh install of 9.04 from the alternate CD
correctly created both user account and "root" entry.

-- 
Jaunty PPC alternate CD fails to create user account
https://bugs.launchpad.net/bugs/378706
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