When installing from the rescue disk or otherwise have anaconda locally there are a couple of issues. When you tell it where the install tree is (ie: a remote FTP site) the first time it tries to download anything is for getting package headers. If the path you entered is wrong the user doesn't know until almost the end of the install. The error dialog you get says "Unable to read header list. This may be due to a missing file or bad media. Press <return>..." VT3 has 5 errors about fetching the hdlist. It should test the valitity of the server/path as soon as possible. Also, this method doesn't find or use the remote product.img. (Not like a really care but...)
There's another bug tracking this with a better summary, but I can't find it right now. So closing this one WONTFIX.