I just tested this procedure with Ubuntu 20110920-i386 and all went as
expected, that is after selecting install inside Windows I was asked to
reboot and the DL & installation completed as they should.

So I'm marking this invalid, but I'd very much appreciate the installer
team devs letting me know if this needs retesting before the Oneiric
final iso-testing images ;^)

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https://bugs.launchpad.net/bugs/838040

Title:
  Wubi - After choosing install inside windows hard reboot is required

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