Check My post under 2.4 titled "no disk" by Wyndigo
Alright Regular Ubuntu Karmic Koala does the same thing (no install,drive not showing etc..) sooo...Dunno what the issue may be will have to check ubuntu forums and possibly notify them may be a workaround already.
Just to let all now that read this I have Ultimate Edition 2.3 installed which I love and I know Karmic will install through upgrade but the overwrites Ultimate Edition..so will there possibly be a Ultimate Edition upgrade through ultimatix or regular repository? That would be great maybe you guys should consider it if possible please comment.
Update: Found this but still if I have a fresh formatted drive this shouldn't be a prob, but here is what I have found thus far:
Warning: Ubuntu Desktop edition installer no longer allows a custom installation of GRUB, and it now uses GRUB2, which allows very little customization. DO NOT USE the Karmic Koala Desktop edition if you use a boot partition, use multiple OS (more than 2), or chainload bootloaders. The Ubuntu installer will overwrite your Master Boot Record and you will later be forced to recreate it. This is a serious flaw in Karmic Koala. Use the Ubuntu Server edition instead (and then later add the ubuntu-desktop).