I started noticing this same problem about a week ago.  The installer
seems to be downloading some stuff from the repos which apparently isn't
working with the older stuff on the install CD.  I had this problem with
both the desktop and alternate CDs.

Running the installer without an internet connection will fix the
problem.  You get a working Hardy Beta system.  Once running, the update
manager can get all the fresh bits.

I think the real problem here is that the installer can download some
packages that aren't compatible with the install process.  I don't know
if the solution for that is just increased testing by the package
maintainers to make sure this doesn't happen, or if the installer should
be changed to not try and download any updates.

-- 
Grub fails to install in Ubuntu Studio 8.04 beta installation
https://bugs.launchpad.net/bugs/217064
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