Ok here's an update ......
I neglected to mention that my DVD rewriter is a 20x LG model GSA-H55L. Used this drive to burn the 710Beta3 "INSTALL" DL DVD quick install. I have 2 other PCs all different parts and motherboard makes and I've had the same problem.
Since last I posted I did the following
1.) I downloaded the iso yet again
2.) Burned the iso using the LG burner through a USB interface with K3b on Fedora 8(all updates)
3.) I put the newly created DVD in my laptop's DVD and let KDE mount it, check and verify that. Yup!
linux-mce.targ.gz_01 show "unknow" file where as linux-mce.tar.gz_00 shows "gzip" file.
00 show to be about 2gig in size, where as 01 shows up as about 1.4 gig. I don't know if this is significant since the md5sums matches what was posted.
4.) Boot up on my brand spanking new PC, yup I decided what the heck and replace everything.
Wouldn't you know it. "cp: reading `/cdrom/lmce-image/./linux-mce.tar.gz_01': Input/output error
1.) I copied the iso over to my Macbook Pro and check the md5sums to make sure I didn't some how mangle it through the process. I then used the same LG burner to burn the image file.
2.) Boot up the new machine using the same LG burner and Viola! same error....
1.) Next up, I burned the iso again accept at 4x speed instead of 8x. Can you guess what happen?
yup I knew you would.... same error!
Just for giggles I burned a copy of 704 DVD quick install, it failed to boot and dump into a simple shell, not sure why really I didn't troubleshoot this one, just grinned and moved on.
I think if I could get a valid copy of the linux-mce.tar.gz_01 file I might be able to get it installed and then get the firstboot stuff in place. The last common denominators are the iso and the burner. I'm about to take the burner in and get a completely different manufacturer.
If replacing the DVD burner doesn't fix the problem I will probably just go back to using MythTV on Fedora and building in all the components in use by LinuxMCE.
Good luck brave souls! Cheers!