Its been a while since I did an intial install, but try this. First type mediacheck and make sure all the disks are good. You really are going to only need the first two disks. I also remember someone else saying they had a similar problem and I think I remember that you have to type something in when asked for the graphic installation. Try typing anything, and hit enter. Sorry this is all I have.
[Registered as user #402956 with the Linux Counter]
Dimension 2350, 1g Corsair Memory, WD250G hard drive, and a really good fan.