I had the same error with newly downloaded ubuntu 12.04 server install
image on a virtual machine. I don't know how to copy the text from the
vm, but you can find the error attached as an image.

I am using 64 bits of virtual machine with 1 GB of disk storage, all
default settings. The virtual machine used is KVM.

** Attachment added: "console error"
   
https://bugs.launchpad.net/ubuntu/+source/debian-installer/+bug/1156008/+attachment/3927424/+files/error_ubuntu_install.png

** Changed in: debian-installer (Ubuntu)
       Status: Invalid => Confirmed

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https://bugs.launchpad.net/bugs/1156008

Title:
  Install the System step failed in Ubuntu Server

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