You may have tried this, but last week, when I was reformatting my RAID setup, i was having hang up problems at various stages of the re-install; believe it or not, what worked for me, was every time I got stuck, I opened the cd tray, and removed the windows cd and reinserted it, closed the drive back, and hit "retry", and EVERY TIME it resumed the setup and completed just fine..
it may not work for you, but its worth a try...
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