Traceback (innermost last):
   File "/var/tmp/anaconda-7.0.1//usr/lib/anaconda/iw/progress_gui.py",
line 20, in run
   rc = self.todo.doInstall ()
     File "/var/tmp/anaconda-7.0.1//usr/lib/anaconda/todo.py",
line 1480, in doInstall
   if self.method.systemMounted (self.fstab, self.instPath, self.hdList.selected()):
     File "/var/tmp/anaconda-7.0.1//usr/lib/anaconda/image.py",
line 46, in systemMounted
   self.loopbackFile = mntPoint + fstab.filesystemSpace(mntPoint)[0][0] + \
     File "/var/tmp/anaconda-7.0.1//usr/lib/anaconda/fstab.py",
line 258, in filesystemSpace
   space.append((mntpoint, isys.fsSpaceAvailable(topMount + '/' + mntpoint)))
     File "/usr/lib/anaconda/isys.py",
line 16, in fsSpaceAvailable
   return _isys.devSpaceFree(fsystem)
SystemError: (2, 'No such file or directory')

Local variables in innermost frame:
  fsystem: /mnt/sysimage//win1

ToDo object:
  (itodo
   ToDo
   p1
   (dp2
   S'method'
   p3
   (iimage
   CdromInstallMethod
   p4
   (dp5
   S'progressWindow'
   p6

<failed>

-------------------------------

The exception appears similar to bug 17889

Hardware:
ram : 128M
HDD : Quantum Fireball 6.4Gb 5400rpm
Motherboard : SuperO P6SBA with Pentium III - 700MHz

Exception occurs just after formatting all partitions.  I was setting up networking for DCHP if that has any bearing.