I was installing 32-bit Ubuntu(ubuntu-10.10-desktop-i386.iso) on VMWare workstation 7.1. During installation an error came up with the following text.
(initramfs) mount: mounting dev/loop0 on //filesystem.squashfs failed: Input/Output error Can not mount /dev/loop0 (/cdrom/casper/filesystem.squashfs) on //filesystem.squashfs
I did a memory test which was successful, but when selecting "Try Ubuntu without installing", "Install Ubuntu" or "Check disk for defects" the same error is showing up.
I download the ISO image from Ubuntu website "http://www.ubuntu.com/desktop/get-ubuntu/download". As I couldn't find the checksum data, the ISO image was verified by mounting to a virtual drive and browsing the contents.
The ISO image is mounted to a virtual drive in VMWare and not burnt to a CD.