I guess this is a little late, but I just tried installing CORE 1 on the same system. The installation hung in the same spot you mentioned.
I worked around it by pulling the SCSI cables from the drives connected to the integrated Symbios controller. This allowed me to complete the installation.
After reconnecting the cables and rebooting, we get:
scsi0 : channel 0 target 0 lun 0 request sense failed, performing reset.
SCSI bus is being reset for host 0 channel 0.
sym53c8xx_reset: pid=59 reset_flags=1 serial_number=0 serial_number_at_timeout=0
scsi0: device driver called scsi_done() for a synchronous reset.
sym53c875-0: SCSI parity error detected: SCR=1 DBC=1100002e SBCL-ae
sym53c875-0-<0,*>: FAST-20 WIDE SCSI 40.0 Mb/s (50.0 ns, offset 16)
So, for now, I'm gonna play a bit with the Symbios settings and, if that doesn't yield anything, I'll just pull the SCSI drives...