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#1634
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.

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#1636
Also remember to repair the permissions of System/Library/Extensions with Kext Wizard once you install the USB kext.
#1640
Try again but boot in safe boot with the-x bootflag.
#1642
How far along did the progress go? Can you save the log and upload it.
#1644
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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