I had the same issue.
Finally got it to work.
From there I was getting a new error (hey, that's progress, right?) that said: "An error occurred while preparing the installation. Try running this application again." Running the application again yeilded the same error repeatedly.
There was an installation folder that had been created on my harddrive. I trashed that, tried again and it worked.
Best of luck.
Any other ideas? I have tried this as well as running /sbin/fsck -fy in single user mode. I am not sure if its related, but when I try to resize my osx partition (after booting to the Recovery HD) I get this error: "Couldn't modify partition map because file system verification failed"
Software OS X 10.8.5 (12F45)
Memory 8 GB 1600 MHz DDR3
Here is what my disk utility looks like and I have 422 GB available.