Installing from ISO is deffinetly supported. I'm not sure about NTFS support whatsoever. On the first CD there are some floppy (1.44M) images, corresponding to the media you want to install from. There should be a floppy image hdd.img or something like this (it's all in the README's). Dump it on a floppy. There's an image with additional drivers. dunno if it will ask for that, but it would be great if you had it handy. After you create the floppies, reboot using the bootable one, go through the steps. It will ask you the method (not sure bout this, it might skip it). You'd select local (hard disk) install, then it's just a matter of selecting the physical device, then the partition that contains the iso's.
At this step it will try to mount the partition. If it fails, it means it can't read from NTFS. Press CTRL+ALT+DEL - It doesn't work and there's nothing else you can do from the installer. It just took you 10 minutes to find out
If it works, it will ask you for the folder with the images. You type it in, he searches the dir for iso or local mirror. Either way, it should have no problem continuing setup. The problems might arrise after the install, as the media manager will not know you installed from iso. It's a wierd thing in 10.1 RC2. I hope it's solved. Anyway to get those pesky files from iso to FDD...
Windows - to get the floppy images, install WinRAR 3.3+, it can browse/extract files from isoz. This way you get a hold of the cd images. You should also get rawwrite to dump the image on the floppy
Linux - open a console. Create an empty dir or have one handy. do "mount -o loop -t iso 9660 /path/to/mandrake-CD1.iso /path/to/empty/folder". CD to the folder containing the images, then dd if="desired_image.img" of="/dev/fd0" for whatever images you need.
