According to PSUbuntuForums at:

http://psubuntu.com/forum/viewtopic.php?t=49&start=135

"I successfully installed the latest live cd 7.0.4 the other night.
It did stall at 15% but I cold rebooted the PS3 and manually set up my 
partitions, 10Gb for the main drive and it left 750mb for swap.
After that it completed installation without a hitch. Hope that helps."

I haven't tried it yet, but I was wondering if anyone has tried it and
it worked? Or, try it and report the results on this forum. I will post
my results when I get around to trying it.

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Feisty desktop install for PS3 hangs when installing
https://bugs.launchpad.net/bugs/106683
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