I also have the same behavior on Dell GX150 using the Desktop CD.
If I press Alt-F3, the system continues to boot and I'm able to install the 
Knot 2 release without any problem.

I guess the problem is in Live CD and Alternate install CD should not
have this issue (also I have not tried it out).

-- 
Install CD Knot 2 hangs at boot time
https://launchpad.net/bugs/60068

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