Hi Frank,
Can you checksum that file on another computer, to check if the CD is OK? If there is md5sum in the install ramdisk, you may be able to checksum it from the installer itself as well.Checked it. The checksum is fine.
I had another go with the dayli etch ISO as of Thursday, the kernel boots fine and I got to set console keymaps and the ethernec module OK. Without the etch-m68k hacks, I got as far as picking a mirror (which had no m68k etch, of course).
With the etch hacks, I got a hang while detecting the CD-ROM. I'll give it another try, but first I have to play with 2.6.27 ... Michael