unsuccessful at Installing “MS server 2008 r2 standard” on a power edge 2970

I have been unsuccessful at Installing “MS server 2008 r2 standard”  on a power edge 2970. I have 2 days invested in this upgrade.  The server was running 2003, I need to upgrade it to MS 2008. I have upgraded the bios from 1.2.2 to 4.2.1 and the PERC 5i from 5.1.1 to 5.2.2.

I have tried to do a direct install by booting off of the 2008-R2 DVD, and every time the installation tries to do the second reboot I get a system failure during the Boot phase.   

Warning: a fatal error has caused system reset! Please check the system event log.

The event log recorded the error as

CPU machine Chk: Processor Sensor, transaction to non-recoverable was asserted.

I can reinstall ms2003 using the  “Open Manage Server Assistant”  CD with no issues. ( I currently have “Open Manage Server Assistant” version 8.10.0-5.2.0-17776).

What do I do from here

1) do I still have a hardware bios issue that needs to be addressed?

2) Do I  need a new ISO for “Open Manage Server Assistant” that will include MS 2008 R2 in the list of operating systems to install which download is the correct one.  I have checked the Dell driver down load section with the service tag and selected “MS server 2008 r2” which results in 57 selections in the “system management” section.

3) or is the power edge 2970 not capable to run MS 2008 R2?