I had the exact same problem, everything was going just fine until it asked for RedHat disc 1. I had 2 that I burnt just as a double check, but it kept saying wrong disk. I ended up just installing RedHat 7.3 with the ext3 fiel system. I never got it to work here. If someone else has sucessfully installed the xfs file system with RedHat 7.3 do you know if it can be installed as a upgrade after RedHat has already been installed? Sorry that I couldn't be of any help stryker.
Neuro7