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Figured out that issue.
Found the following in sqlnet.log
Directory does not exist for read/write [C:\Oracle\Middleware\Oracle_IDM1\log] 
Turns out that I needed to create
and then the Install completed successfully.
I am facing the same issue and I created the folders and still no luck.. any other suggesstions.
This is the way I do this.
1. Start Installer and use "install and configure now"
2. Wait for it to finish the installation and then when it starts the configuration.
3. Open a command prompt and issue the following command
Let me know if this helps.
Thank you for the reply... reinstallation with the folders created did the trick..
For other hitting similar issue check
Author of BOOK OAM/OIM 11g for Administrators