I tried to install Lion after purchasing it from the App Store. It kernel panicked during install and then TRAPPED ME at the installer. Despite restarting, using disk utility, etc, I was stuck.
I erased the partition and tried to install again. Kernel panic. I tried putting Lion on a USB drive. Again, kernel panic
In my desperation I just kept running the installer over and over again and ONE TIME it worked. I was so pleased - until it kernel panicked on restart.
Still, it's working now. It will kernel panic every now and then. When I look at the logs for the kernel panics, the last kext loaded almost always has to do with networking/WIFI. This seems to be a relatively common.
Tried to update Snow Leopard so I could update to Lion: computer now kernel panics on boot.
Tried to reinstall Snow Leopard from DVD: turns out the disk drive is broken.
Tried to install a Linux distro from a USB key: turns out they're nearly impossible to boot on a Mac. Still haven't figured out how to do it.
This went well.