I guess I have experienced the same bug:

Booted Kubuntu Live CD 7.04 on an Acer laptop, 512 Mb memory.
No crash, all _seemed_ to go well, but:
- No window indicating success or anything
- Grub was not installed on the hard disk
- In konsole, typeing something like 'www'  didn't give "-bash: www: command 
not found"
but filesystem-errors.
- Several other valid commands also produced filesystem errors.
- I installed grub by hand on the hard disk, but the system wasn't useable 
after all.

Later on, a text-based install succeeded.
It looked like a corruption of the initramfs.

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kubuntu crashed on install
https://bugs.launchpad.net/bugs/120187
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