Regarding 7.10 regression, I haven't tried gutsy installs with my vm,
but I will and will post back.

As for where it stalls, it is random places. I've seen it stall in
'Scanning for CD-ROM', different packages, pretty much anywhere between
setting up the keyboard and the partitioner. I did see the hang in the
partitioner as well.

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Installation stalls randomly until a key is pressed
https://bugs.launchpad.net/bugs/217815
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