I had the same scenario as Rob York and can confirm that changing IDE
mode to "Compatible" in the BIOS fixes the install issue (I had already
tested my memory and the installation disc and both were fine). I have
also been able to change the IDE mode back to "Enhanced" after
installing (otherwise my existing windows installation won't boot).

It appears that in some newer laptops the optical drive uses SATA
instead of PATA and the installer can't handle it properly. I have had
this problem with 8.04, 8.10 and 9.04, but I've only tried this fix with
9.04

** Description changed:

  Some users have reported being unable to boot from the Ubuntu LiveCD,
  due to SquasFS errors like this:
  
  [  135.292409] SQUASHFS error: sb_bread failed reading block 0x9d7f3
  [  135.292411] SQUASHFS error: Unable to read fragment cache block [275faa28]
  [  135.292413] SQUASHFS error: Unable to read page, block 275faa28, size 23a7
  
  These errors can be due to a variety of reasons:
  
      * bad media (solution: try burning the iso image to a new disc)
      * a bad dvd drive (solution: if possible, try using a different cd/dvd 
drive)
      * bad memory modules (solution: use memtest86+ to check your memory)
      * a corrupted iso image (solution: run an md5 checksum, and if they don't 
match, download the iso image again)
+     * an optical drive connected via SATA instead of PATA and running in 
Enhanced mode (solution: change the IDE configuration to "compatible" in the 
BIOS)
  
  This is all described in more detail here:
  https://help.ubuntu.com/community/SquashfsErrors

-- 
SQUASHFS error while booting from live cd
https://bugs.launchpad.net/bugs/172937
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