2.6.1-1.63. The installer transfers the install image, and (apparently) does the changeloop ioctl. The installer then becomes stuck in disk wait, in the loopback code. syslog with sysrq dumps attached.
Created attachment 97346 [details] anaconda syslog
reason: bio_alloc(..., 0) leaves a lot of stuff uninitialized. Fix: use bio_alloc(GFP_KERNEL, 1); and explicitly set bio->bi_bdev to NULL in the loop_switch(). After that it works here(tm).
Fix integrated into 2.6.1-1.65.