I have this same problem.I installed it twice.first on a 20 gig drive
which worked fine but i partitioned it 4gig to try it out.and it worked
fine till i ran out of space. so i i tried installing on a 40 give drive
with wubi  partition of 9gig and during the wubi install i had the
problem with swapfile swap and it hangs for like 40 minutes and then
continue and finish then reboot and continue the installation.then when
its done and tries to restart, the splash bar goes 1/3 full and goes to
a camand screen and list kind of memory test and sd card test then goes
all the way down till it get to another swapfile swap hang. and does
this for another 40 minutes then continue boots up.after that its fine
till i have to start it up again. so if anyone figure a solution let me
know.

suggestion i think may work. I think the one i installed on 20 gig at
first was the 8.04 copy of ubuntu. and they updated that to 8.04.1 copy
of ubuntu.I put ubuntu 8.04.1 on my 40 gig im starting to think thats my
problem so im go work with that. :)

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Hardy wait so much on "Activating swapfile  swap..." on Wubi installation
https://bugs.launchpad.net/bugs/219349
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