Verify On It isn't a good feeling when the install process finds tracks 49-55 on Base Operating System Disk #1 are bad, and it cheerily informs you that it's assuming that those tracks are all zeros.

Base Install
  You will need 18 1.44MB floppies. 2 for SCSI Boot, 1 Install, and 15 for the Base Operating System. If you know what Licensed Program Packages (LPP) you want to install, have them on hand during the install.

Space Requirements
   If you accept the defaults, you WILL run out of space after applying man, tcpip, DOS Merge, Motif, Adv Dev Tools, and a few others. Look HERE for details.

Install Process
   Create the floppies by rawrite, <image name>, target drive. So for Inst.img, it would be rawrite -f inst.img -d a: or you can run it interactive by rawrite and typing in the image file and destination drive when asked.

Boot with SCSI Boot 1 (or ESDI if you are a masochist). Eventually, you will come to the Bootstrap menu, where you can set up the system.

Bootstrap Menu
Boot from Diskette 
Boot from Hard Drive 
Boot from Ethernet
Boot from Token Ring
Boot DOS
Set Keyboard Language
Set Monitor Type
Set Timezone
Set Machine Name (aixps2 is default name)
Set NLS Translation Language
Copy Diskette
Stand-Alone Backu
Stand-Alone Restore 

Boot from a diskette

NOTE: You are installing a system to the hard drive. There is no AIX system there yet to support running the system from the hard drive.

  The system will grind away and eventually you will see something similar to:
Loading sec 0 (.bss) at 0xXXXXXX, length 178836 bytes
xx bytes cleared
Loading sec 1 (.data) at 0xXXXXXX, length 159732 bytes
xx bytes loaded
Loading sec 2 (.text) at 0xXXXXXX, length 820816 bytes
xx bytes loaded
Please insert BOOT diskette number 2; press any key when ready.

 After BOOT2 grinds away, a new screen pops up, asking for the Installation diskette.

NOTE: The Installation diskette must be write-enabled.
NOTE: In case of a bungled install, the Installation diskette will most likely be munged. If you are attempting an AIX install and it crashes and burns attempting to load the Install disk, recreate the install diskette.

After inserting the Installation diskette, hit enter. You will see something like:

IBM AIX PS/2 Version 1.3
Available user memory: 2349 pages (xxxx bytes)

Then a new menu appears:

Choose Install and customize AIX, press enter. A new menu pops up:

            Replace your Current Version of AIX with the new
            version. AIX System minidisks will be deleted.
            All user created minidisks as well as 
            all non-AIX minidisks and DOS partitions will remain
            intact. 

Choose Install a NEW AIX SYSTEM, press enter. A little note pops up:

"The installation method you have selected will
result in the deletion of all AIX minidisks.
Do you wish to proceed (y/n)?"

Type in y and press enter. The next menu appears.

NOTE: You may choose the default install, BUT you will probably run out of space if you aren't a total Unix-dweeb. I highly suggest Change Current Choices and Install, press enter.

Install the Operating System and cause the current
choices to take effect.

NOTE: To change any of the values,choose the minidisk (use space to toggle items) you wandt to change and hit enter.

For systems with more than one fixed disk, you will see:
Change the fixed disk where the "/"(root) minidisk
will be stored; valid choices are (0,1):_

NOTE: The following two messages will change the blocks and files. They are NOT the same!

Change the number of blocks for the "/root" minidisk.
Enter 0 or a value in the range (16-nnnnnn):_
(Default: 42000)

Change the number of files for the "/root" minidisk.
Enter a value  (0-nnnnnn):_
(Default: nnnnnn)

NOTE: nnnnn depends on the size of your HD.
NOTE: Files are one-tenth of the number of blocks.

Example of an Install on a 1GB Drive (thanks to Rick Ekblaw)
Disk            Size in 1K blocks       Number of FILES
/u              307200                  30720
/aixps2         65536                   6553
/               307200                  30720
page            131072
dump            49152
/aixps2/tmp     102400                  10240

   This gives 300MB for user files (/u), 64MB for "system" files (/aixps2), 300MB for programs, system data files (/), 128MB for paging space (with 32MB of RAM, this should be more than enough), 48MB for dump space, and 100MB for system temp files (/aixps2/tmp).

After making any changes, toggle down to Install the Operating System and cause the current coices to take effect, press enter.

Now the system will flash 

  -making /u filesystem (307200 blks: 30720 files) on ID#1
  -making /aixps2 filesystem (65536 blks: 6553 files) on ID#2
  -making / (root) filesystem (307200 blks: 30720 files) on ID#3
  -making /aixps2/tmp filesystem (102400 blks: 10240 files) on ID#6

After the last filesystem is created, you will see:

Installation of the mini system will take several minutes.
           Installing mini-root, please wait ..
           Installing mini-local, please wait ...

           Updating /etc/system.
           Linking devices.
           Updating Configuration fil
           updating global information information file /etc/fsmap.

           Completing first stage installation.

New screen appears

The system is now ready to reboot.
After you recieve the "System Halted" message
remove the Installation diskette
and insert Boot Diskette 1.

After you have switched the diskettes
press Enter to reboot the system.

Blah, blah, blah.
System halted, you may turn off power now.
Type Enter to Reboot:

Stuff in BOOT1, hit <enter> to reboot. System grinds away. Load Boot2 and Install diskettes as requested. 

 The Bootstrap menu appears again. Choose Boot from Diskette.

IMPORTANT! Choose "YES" this time!

System grinds, eventually displays 

IBM AIX PS/2 Version 1.3
Available user memory: 2349 pages (xxxx bytes)

Now you will see:

                          Diskette Drive 0
                          Diskette Drive 1
                          Tape
                          6157 (IIRC)

Choose Diskette 0, press enter. You will see:

Use the Operating System Diskettes.
Please mount volume 1 on /dev/fd0
... and press enter.

Keep feeding it floppies until it's satisfied.

When AIX is done installing, it will finish loading the files from BOS15 and display:

files restored: xxxx
Press enter to refresh the screen (be sure to czech for errors)

Press enter (it doesn't matter if you leave the diskette in, I did). You will now see:

The new version of AIX was installed successfully.
Post installation procedures will take several minutes.

To CONTINUE with post installation processing, press Enter.

Press enter. You will see:

                     Automatic login of specific username.
                     At system startup the specified
                     username will be automatically logged
                     into the consolwe.

Choose Normal Console Login, press enter. You will see:

Running post installation. Please wait ...

Now the install program products shows up:

Choose Install Program Product, press enter.

Choose device, press enter. Follow the prompts. Just like when it loaded the BOS diskettes.

When you are finished with that LPP, you are sent back to the Install Program Products, where you can install another LPP, or choose "Continue Installation" which dumps you back into "System Installation". Choose "End Installation", press enter.

You will now see:

The system is now ready to reboot.
After you recieve the "System Halted" message
remove any diskettes and
press enter to reboot the system.

15:16:15 System halted, you may turn the power off now.
15:16:15 Press Enter to reboot:

Reboot into the glories of AIX 1.3. Unless you press a key during AIX's boot, it will run unix.gen. If you want to access the Bootstrap menu, press any key during AIX boot.

Thank you, thank you, thank you.

All told, it took me about an hour to start from an LLF'd drive to full BOS install, with man and advanced developer's toolkit installed. My system was a P75, 486DX-33, 12MB RAM, 1,004MB 0663 HD.

Start INed
  Splash sez: TEN/PLUS INed v2, Interactive Systems, Corp. 83, 87
   If you type e, INed will start. Problems with the terminal that INed wants to see. For the record, INed prefers to see:

DEFAULT, hft, hft-c, ibmpc, ibm 3101, 3151, 3151-s, 3152, 3161, 3161-c, 3162, 3163, 5151, 5154, 6153, 6154, 6155, 5081,  8503, 8507, 8512, 8513, 8514, vt100, vt100x, vt220

Installing LPPs after AIX Install
  Run [installp], the system will ask you for the first diskette.

Get Command Prompt in vi
   If you get a bunch of tildes (~) on the left side, shift-q <enter> will bring up a ":", to leave vi, simply type ":q!" <enter> or colliqually, ":q bang".