Im having this problem among other several problems with a dell gx260: cant install any OS. I found this:
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