Cannot install any new apps due to HD not being recognised as a volume

Hi there,
I've been trying to install several new applications for a while now, and after the license agreement screen, the option to select the HD as destination is skipped (the HD isn't even shown as an option) and I immediately get the message saying that there isn't enough free space on the selected volume "null".
It's clearly not a space issue as I have 20GB free.
I was on the phone to apple care for an hour and we repaired disk permissions and the disk verifies fine (from the installation CD), so I have no idea what is wrong.
I'm just installing with the .dmg files on the desktop, and opening the disks from there. This has always worked in the past, as the applications are then transferred to the applications folder. I've even tried installing from there too, to no avail.
Any ideas would be very much appreciated.
Thanks!
Lauren

I see you've done some of this already, but offer the full route anyway, maybe you can start with the Safe Boot part...
"Try Disk Utility
1. Insert the Mac OS X Install disc that came with your computer, then restart the computer while holding the C key.
2. When your computer finishes starting up from the disc, choose Disk Utility from the Installer menu. (In Mac OS X 10.4 or later, you must select your language first.)
Important: Do not click Continue in the first screen of the Installer. If you do, you must restart from the disc again to access Disk Utility.
3. Click the First Aid tab.
4. Click the disclosure triangle to the left of the hard drive icon to display the names of your hard disk volumes and partitions.
5. Select your Mac OS X volume.
6. Click Repair. Disk Utility checks and repairs the disk."
http://docs.info.apple.com/article.html?artnum=106214
Then Safe Boot from the HD, (holding Shift key down at bootup), run Disk Utility in Applications>Utilities, then highlight your drive, click on Repair Permissions, reboot.
The usual reason why updates fail or mess things up, is if Permissions are not fixed before & after every update, with a reboot... you may get a partial update when the installer finds it doesn't have Permissions to change one obscure little part of the OS, leaving you with a mix of OS versions.
Some people get away without Repairing Permissions for years, some for only days.
If Permissions are wrong before applying an update, you could get mixed OS versions, if Directory is the slightest messed up, who knows!
If many Permission are repaired, or any Directory errors are found, you may need to re-apply some the latest/biggest updates again, or even do an A&I if you have enough free disk space.
An Archive & Install, which gives you a new OS, but can preserve all your files, pics, music, settings, etc...
http://docs.info.apple.com/article.html?artnum=107120

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