If you want install Fedora 10 from the DVD ISO image download to a hard drive, you need to extract the images/install.img into the same directory.

Assume the Fedora-10-i386-DVD.iso file has been downloaded to /download.
cd /download
mount -t iso9600 -o loop Fedora-10-i386-DVD.iso /mnt
mkdir images
cp /mnt/images/install.img images
cp /mnt/isolinux/initrd.img /boot
cp /mnt/isolinux/vmlinuz /boot
vi /etc/grub.conf

title Fedora 10 Upgrade
root (hd0,0)
kernel /vmlinuz ro
initrd /initrd.img

Make sure you note device name for the partition of the /download directory.
Boot up the “Fedora 10 Upgrade”.
Choose Hard drive install.
Choose the correct partition device noted above, and the directory where the iso has been downloaded.