Hello Dave,
I saw your posting on CNET, searched to see if you had posted to the e-smith bulletin boards, and sure enough - found your question!
I'm glad to get the chance to help. When you boot with the e-smith CD, do you get the initial screen saying "Welcome to e-smith" and so on?
If so, the instructions on the bottom of the screen explain that you must type "accept" rather than simply pressing ENTER to show that you accept our warranty terms and understand that your hard disk is about to be completely erased.
We feel that it's vitally important that people not be able to install e-smith without reading everything on the screen - so that no-one accidentally deletes their data.
From what you posted, it sounds like you did not type "accept" - is that right?
By the way, starting via any other method (such as "autoboot") is not supported at all.
Please let us know whether this solved your problem, and whether you like the e-smith software in the end. We're constantly looking for suggestions to improve it! Also - if you find that in the end you like the software, we'd appreciate if you mentioned that on the CNET bulletin board as well

Best regards,
- Joseph Morrison, CEO