It is a known error, and there are few solutions :

Firts, and easiest - try removing LAN cable, or disabling network card. It helps sometimes.

If this doesnt work, try to boot with "graphics mode = 640x480x32" flag - it will skip the setup as the screen is too small for it with this flag.

You can also try booting with -s flag, entering the single user mode and paste this into terminal :

/sbin/mount -uw /
passwd root
touch /var/db/.AppleSetupDone
reboot

Hope anything of this will help.

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