I had the same problem: 82% installation stopped for long time.

Message: "creating user"

I installed karmic alpha 6 in the asus 1101ha with crypt in /home and
ext4 system to / and /home and used swap-area to /swap

I booted by pendrive in my eeepc

After long time my installation concluded.

-- 
[karmic alpha6] Installing System with encrypted $HOME: Installer hangs at 83% 
for ~15 minutes
https://bugs.launchpad.net/bugs/432422
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