Selecting and setting root password fails with installer

When selecting to allow root login and setting up a root password, root login fails on the installation... The password you give root is not what is there on install

I have confirmed that what is there for root on a new install is the password that is used on the VSIDO Live-CD (vsido as the pw will get you a root login)

Log file can be seen here http://hastebin.com/osilopoxuc.vhdl