Mac OS 8.5: Unable To Install With Large Disk Cache

After starting up from the Mac OS 8.5 installation disc and opening the installer program, the following alert dialog is displayed:

The applications "DFA Server" could not be opened because there is not enough memory available to continue. Try quitting other applications to make more memory available.

What should I do to complete the install?
This situation can occur in memory configurations, where a large amount of RAM has been allocated for the disk cache in the Memory control panel.

Starting up from the installer disc with the Shift key held down will revert back to the minimum size of the disk cache (96KB) and will consume less memory, so that the installation may proceed.
Published Date: Feb 19, 2012