Ok I made some advance. I was able to upgrade to atleast Fedora 9. The problem was in my onboard LAN (Realtek Ethernet controller). Here's what I did:
1) Disabled the onboard LAN in BIOS
2) Now when I tried installing Fedora 9, I was successful.
3) When I tried to enable LAN in BIOS and rebooted, Fedora 9 again stopped during the boot process.
So booted into Windows to do googling.
4) Googled an found that it's a known issue with Realtek driver version i was using (r8169).
5)Downloaded realtek driver here:
I downloaded version 8.012.00.
6) To install this driver you need to compile it against the kernel sources. Downloaded the kernel source package for my system. I am running kernel 2.6.25-14.fc9.i686. To find out which kernel you are running , type "uname -r" at command prompt. Then you need to download the kernel-devel rpm for the same. I downloaded from
7) Rebooted and disabled the ethernet in BIOS. Booted into Fedora 9.
8) Untarred the Realtek tar file and followed the steps in "Readme". It basically removed the driver version r8169, compiled the new driver r8168 and installed it. To compile the driver, I installed the kernel sources also - the kernel-devel rpm. Also blacklisted the driver r8169 in
/etc/modprobe.d/balcklist by adding "blacklist r8169".
9) Rebooted and enabled the onboard LAN in BIOS. And voila, Fedora 9 worked like charm!!