I can confirm this. I tried to install the ubuntu gutsy live dvd i386 three 
times (burned it three times a new) and every time the installation failed at 
44 % with I/O error.
An hour ago I tried the Xubuntu Gutsy. Ended just the same, at 44 % of the 
installation. 
So I do assume that this cannot have anything to do with the burning of the 
images (Ubuntu DVD, Xubuntu CD)

Because I was thinking this might have something to do with my hard
drive, I newly formatted and partitioned it several times, because the
drive as well began spitting out I/O errors.

I know am installing Xubuntu 7.04 at that very same partition, without having 
it formatted or repartitioned it.
Guess what? It installed WITHOUT ANY error!

I guess this is back to the black board for you dev's.

-- 
Gutsy RC1: Install fails
https://bugs.launchpad.net/bugs/151996
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