diff --git a/usr.sbin/sysinstall/dist.c b/usr.sbin/sysinstall/dist.c
index 716a05421337..8ef85441444c 100644
--- a/usr.sbin/sysinstall/dist.c
+++ b/usr.sbin/sysinstall/dist.c
@@ -757,6 +757,9 @@ distExtract(char *parent, Distribution *me)
 			canceled = 1;	
 
 		    status = FALSE;
+		} else {
+			// ignore any failures with DIST_LOCAL
+			status = TRUE;
 		}
 	    }
 	    break;
@@ -913,7 +916,7 @@ distExtractAll(dialogMenuItem *self)
     restorescr(w);
 
     if (extract_status == FALSE)
-	status = DITEM_FAILURE;
+	status = FALSE;
 
     return status;
 }
diff --git a/usr.sbin/sysinstall/install.c b/usr.sbin/sysinstall/install.c
index db347e2a6053..daacaa6532f9 100644
--- a/usr.sbin/sysinstall/install.c
+++ b/usr.sbin/sysinstall/install.c
@@ -855,7 +855,7 @@ installCommit(dialogMenuItem *self)
     i = distExtractAll(self);
 
     if (i == FALSE)
-	    return FALSE;
+	    return DITEM_FAILURE;
 
     /* When running as init, *now* it's safe to grab the rc.foo vars */
     installEnvironment();