Yeah, that's not the raid card drivers, that's the video card driver. You probably have some sort of ATI chipset. This happens on my hosted database servers which have an ATI ES1000 chipset. It's some kind of kernel driver issue/bug when it attempts to change video modes. The other thing that the ATI kernel drivers like to do is seriously lag the console, which causes linux to boot slower. It's a somewhat known issue with ATI cards but who knows when (if) the fix will ever come. The bandaid fix is to disable the kernel framebuffer.
Do the phase-1 install, when it goes to reboot, boot back off the CD instead. Log into the LiveCD as root. Once you do, mount the partition you just created, then follow the instructions in this post:
http://www.vicidial.org/VICIDIALforum/v ... hp?t=15687
Please keep in mind, if you mount your partition at /mnt/hd, the grub menu.lst would be located at /mnt/hd/boot/grub/menu.lst. Make sure you don't screw up the line count in the grub entries. Pico and Nano like to auto-wrap text when you start typing.