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.
Well, I'm puzzled by the fact that you have your 750 GB disk highlighted, yet on the right it is showing disk0s2 as having 750 GB with nothing on it although your Macintosh HD appears to be part of that disk0s2. I have no idea what disk0s1, 5, and 6 are or what they contain, but the only thing accessible seems to be your Macintosh HD - does that contain your OS? For comparison, here is a screenshot of mine (2 partitions on my internal hard drive):
The area shaded in blue is the space my OS/apps/etc. occupies.
Unless there is a viable explanation of your disk(s), my suggestion would be to boot into recovery, erase your drive, partition properly, and then reinstall from scratch. Make sure you have a backup first.