I had a very similar problem with Red Hat 7,8 with a Proliant 2500, dual PPro 200, similar specifications. Same error.
I put in a problem with Red Hat , they seemed to think it was due to the Smart Array controller. In the end, they told me they don't support intallation on RAID devices. I tried similar command line overrides, including installing in text mode.
Compaq had a newer version of the Smart2 Array controller you could load as an OEM driver that I got from Source Forge, but it didn't solve the problem.
In the end, I abandoned installing Red Hat on the system and just went with Win2k which installed fine.