I have just run into this problem. The following workaround seemed to work in 
my situation. The following information appeared in the Migrate Documents and 
Settings dialog box: "There were no users or operating systems suitable for 
importing from."
This option is highlighted by default. When you click Forward, the installation 
stops responding (hangs). To resolve this problem, you must deselect the 
highlighted entry. To do this, follow these steps:
1. Press any key a few times such as GGGG. In this scenario, a text box appears.
2. Press Backspace to delete the entries from the text box. (the G's that you 
entered in step 1)
3. The default "There were no users or operating systems suitable for importing 
from" entry is no longer highlighted. 
4. Click Forward to continue the installation.

-- 
Installer hangs at "Migrate" on eMachines w3080 w/XP on 2nd HD
https://bugs.launchpad.net/bugs/96083
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