I've done a few installs from a hard drive with previous data (like a /home directory, for instance). There are some things omitted from the manual when I last checked it. Basically, it's the same as the floppy stuff, which you seem to have figured out. I've never tried putting the driver floppy or base2_2.tgz archives in the same partition I'm installing to.
Try booting with init=/install.sh, without specifying the root partition (since you don't really have one--that is, one with everything you need in it). I'm not too sure why the no argument version didn't work for you, since it's always worked for me. Anyhow, at some point, the installer will ask you if you want to mount a previously initialized partition (actually, it'll be one of the alternates). Mount the partition on which you put the archives (I think you managed that). Eventually, it asks you for the base2_2.tgz file. Have it look at the mounted partition, which will then tell you it couldn't find the file. It should give you the option of specifying the exact path to it--you may have to go to a different console (alt-f2 etc, in the usual manner), and fiddle around with the path--I forget exactly what it expects, but you should be able to figure it out from the error prompts. Your partition will be mounted under /target/path/to/mount/point Not sure if that helps you, as I'm doing this from memory. If all else fails, burn an install CD :(. If you let me know the exact steps you've taken, and the exact output, I may be able to help a bit more (at least, once you've got the install actually started). Andrew.