A similar thing happened to me. I was on a wlan where I needed to enter a 
username and password before any traffic was allowed to pass the gateway. Since 
I had a working DHCP lease I guess the live system expected that it could get 
language-packs from the net. I got a "fatal error" and all I could do was to 
click "OK".
If there had been a Retry button I could have just entered the 
username/password using firefox and then let the installation continue.

I did this with the Beta CD.

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Ubiquity hangs installing language packages
https://bugs.launchpad.net/bugs/146207
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