On this test machine, the partition scheme is: /dev/hda1 -> win98 /dev/hda2 -> win2k /dev/hda3 -> Be 5 /dev/hda5 -> Linux / /dev/hda6 -> Linux swap /dev/hda7 -> Linux /usr I told it to mount /dev/hda1 as /win98, /dev/hda5 as /, and /dev/hda7 as /usr. I also told it to format hda5 and hda7. It popped up the status box "formatting /" (as it should have), and then when that finished, a status box "formatting /win98" (which is definitely wrong). Fortunately, only the labelling in anaconda is incorrect (it said it was formatting /win98, but it actually formatted /usr, like it should have)....
Please reproduce in the test lab.
Beta 2 doesn't have this problem. If you can't reproduce it, I think you can close it.
unable to reproduce in test ... thanks for your report, and glad to hear that it is resolved in beta2!