I have occasionally run up against the same problem, which at least in my hands has meant recalcitrant partitioning tables left over from a previous installation. Suggest you "scrub" (=write zeros to) the HD completely, either from the command line, or from say one of the HD applications in e.g. ubcd (mine is 504b, but there would be even later ones).
Puppy is also ideal for installation to a USB device and does not even need a HD.
I have recently acquired a new computer from a friend of mine. The hard drive has been formatted and is FAT32 compatible. The problem is when I come to install Puppy Linux, it shows the following message; Disk boot failure, insert system disk and press enter. I can't seem to get any further than this. I am trying to install Linux from a disk image burned to a re-writable disk. Any suggestions on how to combat this problem?