Before, I continue, I want to preface this with I am a novice with Linux. Having played with Ubuntu versions 6 through 8, I never really could get into this particular distro of Linux as I understand that all root activity must be performed in a terminal windows with a prefix of sudo. I recently downloaded Red Hat Enterprise 5 Linux and immediately discovered that I like the OS as I may logon as root and perform whatever task I want, except software updates through yum, as a paid subscription is required. Then I discovered that CentOS IS Red Hat. The most notable difference is that CentOS is re-branded, access to the software repositories, and is an update or two behind the Red Hat releases as it takes time to re-brand open source code. I was able to install Red Hat in a virtual machine without issue. However, CentOS would successfully get through to the “Transferring install image to hard drive” then fail with the ” An error occurred transferring the install image to your hard drive. You are probably out of hard disk space” error message.
The resolution is at the initial install screen, instead of pressing enter for the GUI install, type linux ide=nodma, then press enter. This resolved this install issue.