Lion Server won't install - Network Error

Hi All

I'm trying to get Lion server set up on an old 2008 Xserve. The process has been this..

Completely format the internal Hard Drive (Named ServerHD)

Using the Apple USB flash drive I install Lion

When the mac reboots after install I get the apple logo and the thinking icon (or what ever it's called new spinning clock). Now the first time it never actually loads the thinking icon just goes round and round (for days!). So I have to power down and reboot the system. Once I'm up and running I manually set the ethernet information giving the unit a fixed IP (incidentally this make no odds to my problem as I've tried DHCP).

Now First time I went to software updater and installed all updates before running the server app and the second time I just tried the server app after installing the base OS.

Any way here is the issue. When running the Server app it starts it's downloading and then about a quarter to a third of the way through it informs me that it can't install due to a network error.

I've tried everything from this post (OS X Lion Server won't complete installation) to no avail. Any one got any suggestions.

Also if I remove the drive from the ADM and try to install Lion Server at home on my 2008 Mac Pro (and that should work) can I place it back in the Xserve with no issues or does the Installer need to be running on that machine your going to use. As it downloads files specific for the macing it's installed on?

Any help would be appreciated.

Cheers

Steve