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Apparently, this is happening to a lot of people, so I decided to talk about my experience with it.

As I was downloading the .iso file, I was talking to a friend via Facebook chat. He told me to just use Wubi Ubuntu Installer so I don't have to through the trouble of burning the .iso to a cd. So I download Wubi from their website and saw that they hadn't updated it to install 10.04. It was still on 9. So after some more searching, I found the version that came with the beta copy of 10.04.

So I downloaded and started it up. If you're familiar with Wubi, you'll know it's quite a simple process. Set it up to dual boot, took off to grab a bite to eat, come back and restart. I was excited to see the start-up and get everything going only to see that an error window pops up as soon as the desktop comes up:

"The installer encountered an unrecoverable error and will now reboot."

Such a helpful error message, right? Let's me know exactly what the problem is...

So I reboot, select Ubuntu again, and it's the same error. I went back to Windows and tried the whole process again, but got the same error. I figured it was Wubi that was causing the problem and thought that burning the .iso and installing that way would solve the problem. I was incorrect because I got the same error with that method. I was fed up.

Instead of consulting Ubuntu's website itself, I did what most of you would have done and Googled myself into a minor coma. My efforts were unsuccessful, however. Finally, I just went and looked around Ubuntu.com to see if there was any help. Turns out this problem is common and is recognized by the developers themselves. They even wrote how to fix it:

Desktop installer sometimes crashes on startup

"On some machines, the CD boot fails with the message "The installer encountered an unrecoverable error. A desktop session will now be run so that you may investigate the problem or try installing again." If you encounter this error, restart your computer with the CD inserted, press any key at the splash screen (when you see the keyboard icon at the bottom of the screen), and select "Try Ubuntu without installing". Once the desktop appears, use the "Install Ubuntu 10.04" icon to begin installing Ubuntu."

Credits: www.Ubuntu.com

So I followed those instructions and everything works just fine now. It was a hassle at first because you're not expecting something like this to fail, but sometimes these things happen and it's good to know that the developers recognize it and give you the exact instructions to fix it.
Thank you very much for this, this is very helpful.
I had same problem with installing 10.04.
Glad I could help. It was driving me crazy.
Wubi is having problems. Its not fully equipped to handle ubuntu in full performance. Its just to test your first experience in linux, not to fully relay on that. For better performance and experience install Ubuntu as along-side with windows. its always recommended and the best way to install linux.
(10-27-2010, 09:44 AM)raamee Wrote: [ -> ]Wubi is having problems. Its not fully equipped to handle ubuntu in full performance. Its just to test your first experience in linux, not to fully relay on that. For better performance and experience install Ubuntu as along-side with windows. its always recommended and the best way to install linux.

with the great leaps linux has tooken with each and every update I would say they will be getting theyre pretty quick