A step failed in installation

Hi everyone im new to this forum, but im pretty familiar with the Backtrack5 distro now im trying to switch over to Kali Linux since Backtrack is now outdated. Well long story short after i have created my live cd and boot it i select the graphical install option and i navigate all the way through and do the guided partition (use entire disk) and about 45% into the installation Kali returns with the error: A step in the installation has failed and the step that it failed was installing the system every time i have tried to do the manual partition that is described in this thread: http://forums.kali.org/showthread.ph...tallation-quot with no success. I am working with the 32-bit installation so if anyone has experienced the same issue and conquered it please instruct me on how to do so myself and thank you all help is greatly appreciated.

after you downloaded it have u verified the SHA1SUM?

I ran into this problem trying to install Kali in a VirtualBox partition. Problem there was that my default installation partition size of 8GB was too small. 10 GB is minimum, and it's better to go 20+. Are you trying to get it to fit on a live thumb drive that's 8GB or smaller in size?