Description of Problem: Creation of Loopback File system fails

Version-Release number of selected component (if applicable): 7.0 (Guiness)

How Reproducible: Everytime

Steps to Reproduce:
1. Unable to create RedHat Linux in a dedicated partion, see bug report 60292, 
so I tried a partionless install.
 
2. Install goes smoothly through selecting componets to install. I selected 
GNOME, KDE and Games. Selected next.
 
3. Meassage "creating Loopback Filesystem on device /dev/hda1" apperaed for 
several minutes and progress meter appeared.  Near end of process, received a 
fail message and computer hung. Partial trace appeared, couldn't scroll, save 
to floppy or continue. Had to reboot.

4. Removed swap file and edHat image file from C:\ and tried install again but 
used upgrade disk, anaconda-vfat-lable-fix.img and command "linux updates".

5. Same result

6. Rebooted, removed files from c:\ and ran install a third time without 
upgrade disk and srlected only GNOME. It ran fine. Linux is now running in 2.0 
gig of space on Win 98SE machine (Pentium II, 384 Meg memory, 16.1 gig HD.)


Partial Trace follows:
Traceback (innermost last):
File "/var/tmp/anaconda-7.0.1//usr/lib/anaconda/iw/progress_gui.py" line 20 in 
rerg=self.todo.doinstal ()
File "/var/tmp/anaconda-7.0.1//usr/lib/anaconda/todo.py" line 1469, in doinstal 
sell.tstab.makefilesystem ()
File "/var/tmp/anaconda-7.0.1//usr/lib/anaconda/sstab.py" line 643 in 
makefilesystems/self.progress, -("loopback")
File "/var/tmp/anaconda-7.0.1//usr/lib/anaconda/isy.py" line 78 innddfile

Expected Results:


Additional Information: