I'm posting because I had the same problem, and none of the fixes in this thread worked for me. I'm also guessing a few people might want to scrap Mavericks and come back to Lion, or Mountain Lion, so hopefully my 8 wasted hours helps someone else. I was running OS X Mavericks for about 2 weeks, which ***** on my mid 2010 MBP, 4GB RAM. Since Apple makes anything other than an upgrade excruciating (read: impossible), I just blew away the whole hard drive and started over. Easy, right? Let's just say I was 5 minutes from abandoning Apple for Linux permanently. Ok, end gripe.
So, for whatever reason, the issue seems to have been related to installing from DVD. I don't care enough to explore why that might be, since I found my workaround. I downloaded the installer, burned to DVD, booted from DVD, went through the "Preparing to Install" motions about 8 times. This is pretty vanilla stuff - empty hard drive, one partition, all erased / formatted with Apple's own install media. I initially stuck with the single partition - Macintosh HD. It would never hang mid way - always would get through 100% of the preparing to install phase, and then the same error.
In an attempt to eliminate causes, I figured it would be handy if I could somehow run the same install package from the hard drive instead of the DVD. Unfortunately, I had already deleted the OS, so I had to boot into the DVD. So, while in the DVD install, I ran the Disk Utility, created 2 partitions (one Macintosh HD, and one 15GB partition for OS X Lion Install). Once that was done, still in the Disk Utility, I clicked on the SuperDisk Volume on the left (the DVD installer), and then the "Restore" tab. This effectively allows to to clone one Volume to another. So if you set the source to be the DVD Install Disk, and the Destination to be your newly minted Hard Drive partition, next time you reboot you can eject the DVD and the installer will boot from the HD. This time, it worked like a charm! Again, no idea why it would keep failing while running from the DVD drive, and work from the HD.
Hope that helps someone.
Cheers.