The same with me here. I think it's may be caused by time server unaccessible 
(the firewall/filter?).
After waiting for some time (5-10min) the process unfreezes and installation is 
going on.
In all the case it is a very annoying situation, because the window is totally 
friezed and timeout is too long.

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https://bugs.launchpad.net/bugs/772415

Title:
  Ubuntu 11.04 hangs waiting timezone window

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