Here is list of problems with beta 1 (build 7000). I was using laters VMWare Player, 10 GB HDD + 1 GB RAM (PC with 3 GB RAM and C2D 7300).

Installation and upgrade

1. No extended partition creating during setup
2. No directory selecting for system (it's always installed in Windows directory on selected disk)
3. There is created additional partition 200 MB

Security and privacy

1. There is disabled by default displaying files extensions...