I can confirm, that the problem still exists in the debian-8.6.0-i386-DVD-1.iso image!
While installing the distribution, the install process hangs at approx. 33% while formating the first partition.
I switched to the terminal console and searched for the "50format_ext3" script, checking for the existence of the "-F" option (see above). Strangely, the switch does not exist!!
I solved the problem with following steps:
1) Reboot the installation image and step through installation process until you reach the harddrive-partioning part.
2) Switch to the terminal console and copy the 50format_ext3 script on an external USB-stick (there is no editor installed on the installation system)
3) correct the script as explained above on a external system and copy the script back into the original directory
4) continue installation process.
Pretty dirty quick fix, I agree. But it works.
-bernie
