Before I get to the chrooting, have you considered circumventing the problem? You're not entirely without options:
booting from USB stick or USB DVD (unless that hangs the computer too)
or, if you have another computer at hand,
booting from network (if your laptop is capable of that) - setting up a tftp server is not difficult.
taking the hard drive out and installing it on another machine.
The next thing to consider is: do you really need chrooting at all? Isn't the installer able to run from any directory?
Now chrooting. A lot depends on whether your disk is partitioned. If it is not I would strongly suggest to take one of the routes above (which are actually a fallback if anything goes wrong).
Supposing you have a partition S mounted at /S where you can put the installation media contents, and a partition T mounted as / in running system, the steps should be more or less as follows (disclaimer: I haven't tested it!):
loopback-mount the iso somewhere: mount -o loop,ro /path/to/iso /some/where
copy the media contents to from media to S: cp -r /some/where/* /S
get in single-user mode, switch off all sevices, unmount all partitions except for T and S
bind-mount important pseudo file systems from the running system:
for fs in /dev /dev/pts /proc /sys; do
mount -o bind ${fs} S${fs}
done
pivot_root - swap root and another directory for the running process and exec chroot (the exec is necessary to be able to unmount the old /).
cd /S
pivot_root . old_root
exec chroot . command
unmount old root:
for fs in /dev /dev/pts /proc /sys; do
umount old_root${fs}
done
umount old_root
And there you should be, having the media contents mounted as / and the most important pseudo file systems where they usually are. Note that you can't really just chroot to the mounted media, if you want to unmount the old / - the mounted media backing file has to be on a file system mounted somewhere under the old root and you have to unmount everything from under root. And you do want to unmount the old root, unless you have another spare partition to install to - because if you are going to install to T having it mounted somewhere else at the same time, possibly with some programs still running from it, is just asking for troubles. Especially should you decide to format it.