Usetup does not convert partition type to "FAT" correctly

Created an attachment (id=3816)
error message at 1st stage setup

steps to reproduce:

1.- Download the gparted live-cd iso
2.- Convert hdd to ext2 using this live cd
3.- Restart, booting from ROS bootcd
4.- Use the option "reformat the partition to FAT FS"

the installer seems to format it correctly, but then it fails creating the /ReactOS dir

latest log lines are:

EV_BEEF&SUBSYS_00000000&REV_00\1&f103bba4&02
(base\setup\usetup\interface\devinst.c:371) Device arrival event: PCI\VEN_8086&DEV_7111&SUBSYS_00000000&REV_01\1&f103bba4&21
(base\setup\usetup\interface\devinst.c:371) Device arrival event: PCI\VEN_8086&DEV_7000&SUBSYS_00000000&REV_00\1&f103bba4&01
(base\setup\usetup\interface\devinst.c:371) Device arrival event: PCI\VEN_8086&DEV_1237&SUBSYS_00000000&REV_02\1&f103bba4&00
(ntoskrnl\io\iomgr\file.c:414) Using IopParseDevice() hack
(ntoskrnl\io\iomgr\file.c:414) Using IopParseDevice() hack
(ntoskrnl\io\iomgr\file.c:414) Using IopParseDevice() hack
(ntoskrnl\io\iomgr\file.c:414) Using IopParseDevice() hack
(drivers\filesystems\fastfat\fsctl.c:278) SysType ë<M