From AIX 5.2 to 5.3 a load of adapters became unsupported.
There are also firmware requirements for 5.3.
The release notes give details:
pSeries and AIX Information Center
Update the system, adapter and device firmware first.
http://www14.software.ibm.com/webapp...firmware/lgjsn
Run the premigration script from the 5.3 CD to check your system out.
pSeries and AIX Information Center
Search in the left side search box for pre-migration for other associated links.
Check your applications all support AIX 5.3.
Then when you and system are ready, try again.
The H70 does support 5.3 with late firmware but some of the adapters supported at 5.2 are no longer supported and must be removed.
If you have a graphics card this may be unsupported at 5.3 and the cause of the failed fileset installation, details of supported cards are in the release notes.
Good luck and please let us / others know how you overcame the problem.