First stage setup fails on Harddisk with 20GB or larger

On installing, the first stage setup runs fine until it starts formating the drive / copying the files, where it
continually reads or writes to the HD some time, than stops for a few seconds and repating with that.
I had let it run for about 20 minutes without any progress.
I have tested it with a 5GB and 20GB, 60GB, 80GB and 140GB hard drives and the problem has shown on every HD with 20GB or more, while the 5GB disk worked just fine.

Note: When captured the debug log, I had let it run for just about a minute to hinder the debug log from growing too much, but I can capture a longer log if it is needed.