[dnanian]

This looks like a damaged file on the source drive. It should be fixable with Disk Utility.

Start up from your Tiger install DVD and run Disk Utility from the Installer menu (the bold one that says "Installer" next to the Apple menu at the top of the screen) or the Utilities/Tools menu (depending on the version of the disc you have). Then, use the First Aid tab to repair the drive, using the buttons on the right (NOT Repair Permissions on the left). Repeat until no problems are found, then start back up from your real drive and try again.