Looks like a low-level (i.e. OS level) IO error to me when reading one of the files in /usr/lib/python2.7/site-packages/babel/localedata.
Brian, are live images automatically checksummed, or is this optional?
Muhammad, did you check the integrity of the medium from which you attempted the installation?
Anaconda team, why does this bug here not have the log files (as bug #951762)? It's kind of crucial to know if there are related FS errors happening or not ;-).