I have the same problem.
I have an Intel Imac 10.6.6, so the computer specs are not the problem.
I have multiple discs of iLife for a school lab and none of them will work for the install.
I have repaired permissions
I have called tech support... they said use original install dvd to reset password and reset ACLS (permissions) ... didn't help.
I am out of options... iLife installed find on my other 29 mac computers, even my older single intel chip macs
any other thoughts out there?
I bought it too. My computer meets all of the requirements. The disk is ok, my computer is maybe a year old, and I have over 200 GB on my hard drive available for it. I have rebooted and tried several times. It starts the install process gets to preparing for installation, validating packages, writing files... then it just dies. "The installer encountered an error that caused the installation to fail. Contact the software manufacturer for assistance."
From the console app, for what it's worth:
5/24/11 8:44:25 AM Installer The Installer encountered an error that caused the installation to fail. Contact the software manufacturer for assistance.
I find it completely ridiculous that Apple will distribute a disk for software that won't even install. Poor quality control.