If you are using the Live CD kingcobra, try downloading and burning to
CD the alternate install .iso at
http://ubuntu-releases.cs.umn.edu/edgy/ubuntu-6.10-alternate-i386.iso

I was having exactly the problem you are describing, when I used the
alternate iso the installation went without a hitch.

Bob

-- 
gnome-settings-daemon crashes at login
https://launchpad.net/bugs/61381

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