How about something really simple...
1.  Run Ubuntu from CD
2.  Install Ubuntu to Hard Drive

or to be even more clear...
1.  Run Ubuntu from CD (does not touch hard drive)
2.  Install Ubuntu to Hard Drive

simple, straight forward, and not at all confusing.

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Boot-up option 'Start or install Ubuntu' scares new users
https://bugs.launchpad.net/bugs/109064
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Bugs, which is the bug contact for Ubuntu.

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