Using Hardy Alternate 64-bit disk (both Beta release and recent
nightlies) I see this same behavior on my system. I can get things to
pick up again by pressing keys, I haven't tried mouse clicks, but
hitting any key on the keyboard (I usually hit ALT or ENTER) seems to
unstick things. However, I've not been able to get it to completion.
Perhaps I wasn't patient enough.

I've collected some more information in another bug I posted before
finding this. It is bug #217849

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When selecting LVM Crypt, erase never ends
https://bugs.launchpad.net/bugs/217815
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