This happens in both the text and graphical install. My System: AMD K6-2-
300 128MB ram, SB16 sound, Diamond viper v550 (Riva TNT) 
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 1472, in 
doInstall if self.fstab.mountfilesystems(self.instPath):
File "fstab.py,line 710, in mount filesystems i util.mkdirChain(inst Path 
+ mntpoint)
File "/var/tmp/anaconda-7.0.1//usr/lib/anaconda/iutil.py", line 193, in 
mkdirChain os.mkdir(path,0755) 
 OSError:[Errno 17] file exists:'mnt/sysimage/boot'

I have tried evrything (graphical and text mode)I'm booting from an 
original redhat cd-rom. Most times the system hangs at installing the 
packages, but sometimes this error appears.