I have this problem too! Couldn't get gutsy to install no matter how hard I tried. Fedora worked fine straight away though. Was hoping for an improvement with ubuntu 8 but guess I'll stick with fedora for now.
I have just upgraded my laptop to the latest RC for 8.04 LTS from 7.10, and I have to report that all is well so far. Gnome has been upgraded to 2.22, the kernel has been upgraded to 2.6.24, Firefox to 3 Beta 5, some backend changes to Nautilus and other bug fixes, new apps etc. The full change list from 7.10 to 8.04 LTS (RC) is on the ubuntu website.
On my system the update removed 65 packages, installed 195 new packages and updated 950 packages. It took about 30 mins in total.
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