I tried the following steps:
1) run the wubi inside 9.10 final release desktop cd to extract installation 
package on a FAT32 partition (choose a installation size less than or equal to 
4GB due to single file capacity constraint on FAT32 and keep others default);
2) restart the computer to see that the automatic installer executes smoothly 
to complete;
3) log in the newly installed system and everything is OK.
I'm glad to say this issue on FAT32 does not occur anymore.

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installing ubuntu stoped on "installing system" on 0% without any progress for 
half an hour 
https://bugs.launchpad.net/bugs/376120
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