ok so i think i am causing the issue, but here goes.
I have a new DL360 g7 and have purchased a off the shelf sdhc 4gb sd card (i think that might be the issue) not the overpriced HP versions.
I have tried installing both from the HP version and the VMWare version of the iso 4.1, but keep I get to 2% of the install before it says I have bad sectors on my disk. To make sure I wasn't going mad, I did the same thing with a transcend 4gb usb key, again internally with the same results.
The bios has been updated to the most recent version but other than that the bios settings are out of the box.
I have hard disk to install for testing but do not want to use them for the final install, i want a diskless install.
I cant believe i am the only person having this issue, but google searches have turned up nothing conclusive.
Has anyone else had this issue or has a way around this issue!!
P.S. i didn't get the output log before leaving the office tonight, i will get it tomorrow morning and post if needed.