I got the nightly build apache-royale-0.9.3-bin-js-swf.zip on June 22. It looks like the issue may not be related to the flex-config.xml. I tried to compile another component source and it went ahead and compiled the component giving a bunch of compile errors. It did not hang though.
-- Sent from: http://apache-royale-development.20373.n8.nabble.com/