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Ok it definitely sounds like the installer is corrupt. You mentioned you had a HP laptop with OS X installed. Use that to make the Installer and make sure it all copies correctly and the USB is ejected before removing it.


Also remember to repair the permissions of System/Library/Extensions with Kext Wizard once you install the USB kext.
Try again but boot in safe boot with the-x bootflag.
How far along did the progress go? Can you save the log and upload it.
Ok when it fails click on Window in the menu bar and open Installer Log. From there you can save it. Save it to the USB and upload it so I can take a look.
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