using 'vncconnect=host' (on the kernel commandline) doesn't work properly. Anaconda says: The VNC server is now running. Attempting to connect to vnc client on host metroid... Connected! Starting graphical installation... but a tcpdump of port 5500 and 5901 on metroid shows no connection. Furthermore, netstat -tl shows that the machine is actually listening on port 5901. vncviewer can connect to the test machine and the install continues normally.
Probably shouldn't clobber the correct /etc/resolv.conf with something only partially correct. Using the FQDN might work.