ScottishDuck, you saved my neck bro!
While trying to leapfrog from Leopard to Mountain Lion (long story, don't ask) on my late 2007 MPB with a WinXP Boot Camp setup, I found myself between rock and a hard place due to the infamous
recovery system can't be created error. Whenever I tried to restart the installation using the run-of-the-mill "InstallESD.dmg" USB boot disk, the Mountain Lion installer got stuck at the "
Installing OS X on the disk..." stage, making it impossible to access Disk Utility (or any other recovery tool for that matter).
I was on the brink of digging up my Leopard Install DVD when I stumbled upon your "BaseSystem.dmg" workaround. It worked like a charm! The installer no longer stalled at the "
Installing OS X on the disk..." stage and I was thus finally able to fire up Disk Utility. Following
these instructions, after verifying and repairing disk permissions, I used Disk Utility to resize the system partition, freeing up 1 GB of space at the end. The rest of the Mountain Lion installation was as smooth and uneventful as they get.
I'm pretty sure the "InstallESD.dmg" installer wasn't able to create the recovery partition because of my atypical WinXP Boot Camp partition scheme. Looking back at the whole thing, in light of the fact that the "BaseSystem.dmg" installer
doesn't create a recovery partition at all, the partition resize was probably unnecessary.
Since I never did manage to see the Mountain Lion installation through using the "InstallESD.dmg" USB disk, I'm not able to compare both methods in terms of installation time. That said, seeing that the "BaseSystem.dmg" USB disk was more than 4 times faster to boot than the "InstallESD.dmg" one (56 secs vs 4 min 47 secs), assuming that the installation would also be faster with the former doesn't seem like a big stretch.
Cheers mates!