I experienced this problem as well, unrelated to a loose IDE cable.

During an Ubuntu 8.04 Hardy Heron install, I manually edited partitions
so /  was different than /home (the /home partition contained my
existing Ubuntu home directory), and when the installer got to "Creating
User", (around 79%) the "Installing system" dialog disappears.

The only workaround was not to configure the installer's partition
editor to put /home on a separate partition, which I guess I'll have to
rejigger after the install completes.

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Installer crashed when creating user
https://bugs.launchpad.net/bugs/69970
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