Can this be confirmed with the beta release? Also, at the moment I do not see a 
strong hint about what the problem could be. Do we have a chance to set up 
those installs to write console output to a file? Then maybe add debug to the 
kernel command line in order to send even lower prio messages there.
I have not been able, yet, to get the same locally. Would it be possible to 
summarize a bit more details about the host and guest setup? What release is 
running on the host, beyond memory what is the exact guest configuration. How 
much more is running on the host in parallel (like is host memory 
overcommitted)?

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https://bugs.launchpad.net/bugs/790712

Title:
  20110531 i386 server ISO: order 5 allocation failure during install

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