The DVD booted up fine. With the Disk Utility I was able to format my newly connected 500GB SATA drive with HFS+. The installation crashed about 6 minutes before the end with the following error:

ReportCrash [779]: mkdir() failed to create /Library/Logs with error: Read-only file system

After restarting the installation by booting up from the DVD, it happily detected that majority of the files had been copied over and it took about 2-3 minutes to complete the rest of the process and announced that the installation was a success and that the computer will reboot.

With the DVD's bootloader to boot the drive (I think that's one of the problems, the bootloader was never installed because of that crash), I get the following error:

/com.apple.Boot.plist not found

Without the DVD's bootloader I'm stuck with a blinking cursor after "Verifying DMI Pool information..." or whatever that BIOS message is just before the OS takes over.

Here is some information about my machine

DVD Image MD5 checksum: 9fa4a7e1726757b958ce8da3a6fe8187
CPU: AMD Athlon 64 FX-55, 2600 MHz (13 x 200)
Motherboard Name: MSI K8N SLI-F
Motherboard Chipset: nVIDIA nForce4 SLI, AMD Hammer
System Memory 1536 MB (PC2700 DDR SDRAM) (3x 512 MB sticks)
BIOS Type: Award (08/24/06)
Video Adapter: NVIDIA GeForce 8800 GTX (768 MB)
Monitor: Samsung SyncMaster 1100DF CD210C [21" CRT] (HVAY101285)
Monitor: Samsung SyncMaster 1100DF CD210C [21" CRT] (HVAY801967)
Audio Adapter: NVIDIA MCP04 - Audio Codec Interface
Disk Drive: ST3250824AS (232 GB, SATA) (WindowsXP partition, Linux partitions)
Disk Drive: NVIDIA STRIPE 298.10G (298 GB) (2 RAID0 SATA drives) (NTFS storage)
Disk Drive: ST3500320AS (465 GB, SATA) (HFS+ formatted) <-- this is where I'm trying to install
Optical Drive: SAMSUNG CD-R/RW SW-252S (52x/32x/52x CD-RW)
Optical Drive: TSSTcorp CD/DVDW TS-H552U (DVD+R9:5x, DVD+RW:16x/4x, DVD-RW:12x/4x, DVD-ROM:16x, CD:40x/32x/48x DVD+RW/DVD-RW)
Keyboard: Microsoft Natural PS/2 Keyboard
Keyboard: Microsoft Natural Ergonomic 4000 USB Keyboard
Mouse: HID-compliant mouse (MS Habu Optical)
Mouse: PS/2 Compatible Mouse (MS Intellimouse Explorer Optical)
Network Adapter: NVIDIA nForce Networking Controller - Packet Scheduler Miniport (192.168.0.x)
USB1 Controller: nVIDIA MCP04 - OHCI USB Controller
USB2 Controller: nVIDIA MCP04 - EHCI USB 2.0 Controller
USB Device: Habu Mouse
USB Device: Natural Ergonomic 4000 Keyboard
USB Device: Plantronics DSP-500 USB Audio Device

Any ideas, I've searched everywhere for that crash error and how to fix it but no luck so far.