You can work around this by using the following procedure:
1. Select 'Manual Installation' from the main Installation menu
2. Select the appropriate language
3. Select 'Kernel Modules (Hardware Drivers)'
4. Select 'Load IDE/RAID/SCSI Modules'
5. Load 'i2o_core with no parameters
6. Load 'i2o_config' with no parameters
7. Load 'i2o_block' with no parameters
8. Hit 'ESC' once, with will take you back to the main menu
9. Select 'Start Installation and System'
10. Select 'Start Installation or Update', along with the appropriate medium
11. Follow the regular installation procedures at this point (refer to manuals if needed)
12. After the first installation reboot, you will need to perform steps 1 - 10 again and then complete the installation
13. After the installation you will be prompted to login
14. After you have logged in, open a terminal interface and login with 'root' access
15. Edit the /etc/sysconfig/kernel and add the modules 'i2o_core' and 'i2o_block' to the INITRD_MODULES line (inside the quotes). For example,
INITRD_MODULES="i2o_core i2o_block reiserfs"
16. After saving the configuration to the /etc/sysconfig/kernel, you will need to re-create a RAM disk. You can do this by type mkinitrd from the terminal prompt.
17. You can now reboot the system and everything should work.
Worked for me