Distribution: Fedora 9, x86_64

Hardware:
Asus P5E motherboard
Intel Q6600 - 2.4Ghz
8 GB RAM
ATI Radeon 3850

The install goes fine, and then I am asked to press the reboot button, the system reboots, I get the Welcome screen (appears to be in high resolution - 1680x1050), telling me that there are a few steps, which I go through in successive order: License Information, Create User, Date and Time, Hardware Profile. I accept sending the hardware profile, and click on Forward, next the screen goes black and then I get a screen with scrambled colors, and the system reboots, when the system reboots, I am back at the Welcome screen and it asks me to repeat the procedure. The reboot repeats, and I am back at the Welcome screen..

Any ideas?

You probably need to install drivers for your graphics card. I can give you a step by step if it was Nvidia.
For ATI I can only point.
You need to boot into single user mode to install graphics drivers (providing you have an internet connection), in Fedora 7 I hit any key at the boot splash, type a to edit kernel boot parameters. At the end of the kernel parameter line is the word "quiet", add a space and type the number 1 and hit enter.
This should boot into command line only and ask for admin. password. Once logged in as root try the commands suggested here to enable rpmfusion repository (under "Requirements"), and install drivers.
Then issue command: reboot to reboot into "hopefully" graphics mode.