Well, I don't enable safe system. It is already enabled. As far as I can tell, I want to install this ROM with Safe System Currently Enabled. I really think I'm following all the steps in the OP. The install appears to go smoothly. But despite my best efforts I can't boot into the ROM. Not even once. The boot process hangs, then a reboot, then a hang, then a reboot, etc. etc.
Where do you have the .zip saved? SD-EXT? Also, did you check MD5 checksum on .zip file?
Update: Nevermind on CheckSum. If it wasn't right you wouldn't be able to start install before getting error.