try using a different kbd/mouse combo during the installation, perhaps that will get you past this. after install (assuming successful) try to reconnect your original hardware and see if you can function correctly.
also, while there is no solution here, try reading this post to get an idea as to what is happening here: USB Mouse fails with any 2.6.26 kernels - FedoraForum.org
just a thought. good luck with that....


