F19 XFCE installation LUKS failure

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http://forums.fedoraforum.org – I have been trying to install the netbook version of Fedora (XFCE) to my netbook (64-bit), but the installation keeps failing. There is a problem with the LUKS configuration, and I have posted the whole error report here: http://pastebin.com/TrhCxDSK I have been trying to created an encrypted hard drive, so I am assuming that the LUKS problem is due to that, but I don't know how to solve the issue. Any help would be welcome. Finally, I have been creating a live USB to load the OS to my netbook. I have been formatting the USB in FAT16, is this correct? Or should I be using another format? (HowTos)