I did find that nuance after posting and did go and format the disk with case sensitive, journaled.
It went through some of the install then it dumps with the descriptive error "Failed to copy files" Using a 10.6 DVD and it is a 64GB C300.
Any reason for Case Sensitive? Unfortunately I found that Apple's implementation causes more trouble than it is worth. I'm not sure if it's fixed yet, but I remember none of the Adobe products working on a partition with a Case Sensitive partition.
Usually case sensitive is only necessary for people either running a server or doing things like PHP, IIRC.
Edit: Looks like there is a solution to install Adobe products on Case Sensitive systems but it's a PITA. I recommend going for Case Insensitive, but I'm not sure what your workflow and requirements are.
Edit 2: I looked around on Google and tried to find people with similar problems. The two most common are errors occurring in RAM and Bad Media. Faulty RAM is fixed either by running with one stick of RAM (in the case of having multiple sticks and using process of elimination to figure out which stick is causing errors) or by replacing the RAM entirely. The other appears to be getting a DMG of the OSX install disc and installing it either onto a USB Stick or onto another DVD entirely.
Not sure if that helps, hope it does.
I tried the install again and all is fine now. Looking at the DVD, it looks rather beat up so I'll make an image for future use.
No good reason for case sensitive fs other than I am use to it from linux. I will see how it goes with program compatibility. I use the computer mostly for coding(C/C++ in vim so I should be fine there) and web, no graphical content creation.