Here is how I installed the beta2 ISO manually to a partition, without burning a DVD.
WARNING: improper use of the following commands will likely destroy other partitions if you're not careful!!! This is not for the squimish and your mileage may vary:
# create /dev/sdaX
fdisk
reboot
#mount the ISO
cd /where/you/saved/the/iso
mkdir -pv /media/linuxmce
mount -v kubuntu-linuxmce-0710-i386-beta-2.iso /media/linuxmce -o loop,ro -t iso9660
# Create a filesystem on the new partition.
mkfs.ext3 /dev/sdaX
# Mount the new partition and go there
mkdir -pv /media/sdaX
mount /dev/sdaX /media/sdaX
cd /media/sdaX
# Untar the base.
cat /media/linuxmce/lmce-image/linux-mce.tar.gz_0{0,1} | gzip -cd | tar xvf -
# Put a few things in their place.
rmdir lost+found
mklost+found
mkdir -pv dev proc
cp -iv /media/linuxmce/lmce-image/firstboot etc/init.d/
ln -sv ../init.d/firstboot etc/rc2.d/S90firstboot
cp -iv /media/linuxmce/diskless-images/* usr/pluto/install/
# Find the UUIDs of the partitions we're goting to use.
vol_id -u /dev/sdaX # newly created
#> d43aaa52-a120-47f5-aae7-721aa5fe90a7 # mine for example
vol_id -u /dev/sdaY # existing swap
#> 593b77dd-54c8-42cd-acb7-2d7c76c2c7f1 # mine for example
# Use those numbers to edit the following files:
vi boot/grub/menu.lst
vi etc/fstab
# You may want to skip this one if you only have one NIC.
#vi etc/network/interfaces
sed 's/eth0:1/eth1/g' -i etc/network/interfaces
# Let the system detect your NIC(s) instead.
#vi etc/udev/rules.d/70-persistent-net.rules
sed '/"net".*"eth."/d' -i etc/udev/rules.d/70-persistent-net.rules
grep '^mysql:' etc/passwd | cut -d: -f3,4
#> 109:119 # 0704, 0710 beta1-2
# Change ownership of the database files.
find var/lib/mysql ! -user root -exec chown 109:119 '{}' \;
reboot
Everything is done as the root user, and you will need to replace /dev/sdaX and /dev/sdaY with the partitions you created or want to use. You will also need to configure a bootloader to start your partition, I used the existing GRUB install on another partititon and added extra targets to its /boot/grub/menu.lst.
No guarantees that this will give you a properly working system, but so far everything seems to work fine for me.