Des's observation that it worked fine on a Hackintosh is interesting, I wonder if Apple are attempting something in the way of a broader range of hardware?
You can imagine that I felt pretty miffed that it works on a Hackintosh and not on a brand new Mini server! From the reports that I have read there doesn't appear to be any rhyme or reason to the failures.
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Finally managed to get it installed thanks to perseverance, magical incantations, and (I suspect) a new update file from Apple. But it looks like there are some significant improvements to the Server applications, so worth the effort. I've kept a clone of 10.7.2 - just in case.