I've just encountered this trying to install 7.04 Desktop on a dual processor 
32-bit xeon system. Specifically

(initramfs) /bin/sh: can't access tty; job control turned off


I catted out Casper.log: I'll try to summarize here

/init: /init: 1: cannot open /dev/fd0: No Such device or address
Unable to find a medium containing a live file system
mount: mounting /cdrom failed
chroot: cannot execute debconf-communicate: no such file or directory
(lots more no such files or directory errors)
couldn't umount /root/cdrom: invalid argument

I've not tried the server version yet.

-- 
Installation Error: Can't Access tty.
https://bugs.launchpad.net/bugs/126335
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