Please mark it as invalid. It was due to an overheating CPU (bad fan).
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Ubuntu 9.10 hangs during installation due to ubiquity?
https://bugs.launchpad.net/bugs/518377
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Public bug reported:
Binary package hint: ubiquity
I suspect this is due to ubiquity, however I cannot be sure.
System:
Celeron-500
412Mb RAM
Kernel version: 2.6.31-14-generic #48-Ubuntu
Symptoms: installation progress reaches 43-58% (randomly), after which
installation hangs indefinitely