[dnanian]

This indicates damage on the source drive, "raceryan".

It's possible it might be able to be repaired with Disk Utility. Please start up from your OS Install disc and run Disk Utility from either the Installer application menu or the Utilities menu, depending on the version you have.

Use that to repair the normal boot volume (not permissions, but the disk itself).

Repeat until there are no more errors, then boot back to the drive and try again.