Using IDE drives isn't a resolve here seeing there are only SCSI drives are used in the entire place. Also, it isn't logical for me to consider that SME's kernel doesn't accept basic SCSI stuff such as Adaptec 2940 controllers, SCSI2 drives, etc. I'm of the opinion SME 6.5 uses the 2.4 kernel and I have sucessfully installed both Slackware and FC with 2.4 kernels on this machine.
I have, however, resolved the problem. I tried an install on a box using a Tekram 390U2 SCSI adapter and U160 SCSI drives. SME installed flawlessly. I then gutted that box and installed everything from the problem box in it, except the motherboard, RAM and power supply. The SME install worked correctly. I tried all 3 disks I had burned and all 3 installed okay.
That leaves the motherboard, the RAM or the power supply as the only suspect hardware items in the problem box. I still do not know what the problem really is though, seeing that box accepted a FC3 install and a Slackware install. Whatever, I am not going to spend a lot of time trying to figure it out. I have SME up on a box and I will simply use that box.
Thanks to all for the input.