I am trying to install RHEL4 on a VM on Hyper-V (Windows Server 2008 Virtualization). I am not able to get the setup to start properly,

1. I boot from the RHEL Disk1 and see this install options screen,
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2. Once I choose linux or linux text, this screen shows up for few seconds and it returns to initial screen,
Click to view attachment

I have tried "linux noacpi noapic nousb" switches but none of them worked.

Any help is appreciated.

Microsoft's virtual software isn't known for great Linux support (surprise). In fact, only SUSE is officially supported. Other flavors should work, but might take some googling to find answers.

yes, I know that but I am stuck with RHEL4 and was trying to get it to work. I played around with Ubuntu and it worked great.

Try doing the install in text mode. In the past the graphical installers have caused issues in MS virtualization products.

I've had exactly the same problems but when trying to install Ubuntu in MS Virtual PC. That problem was caused because Virtual PC only supports 16 bit per pixel and Ubuntu runs 32bit so you had to change it to run in 16bit before you could actually install. Maybe it's a similar problem.

To sum up: Follow Kurse's advice