When I tried installing ubuntu with a home partition formatted as FAT32 it got stuck in a loop trying to create my home direectory. It could be possible that there's an issue of trying to install to a FAT partition. It seems odd that it's trying to install stuff before you have a chance to do anything with the partitions. I only used Mandriva briefly about a year ago, so I don't remember the exact process, but it does make me wonder about the installation disk. Anyway it's probably a bad idea to install to a FAT partition. I think there's something with it not being able to set linux permissions quite right. If you need to share data with windows, use a third partition as FAT for sharing and something like ext3 or reiser for your root. You might try formating the partitions using some kind of liveCD like Knoppix, which is probaably a good thing to have laying around anyway for system maintenence.
The most common reasons for problems installing seem to be a bad disk. If you haven't already done so check the MD5 sum of the file you downloaded. I don't know how to do this from windows, but google can probably tell you. Another common source of bad disks is burning the iso to fast. There should be an option to set for lower speeds, I usually burn mine at 4x without problems.
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