I have seen this on the gutsy betas for some time.  I thought it was a
partition issue, but running the installer in debug mode I see that if
you wait a few minutes a log message appears that complains about the
network card firmware.  I have recently reinstalled without the error by
copying the correct firmware to /lib/firmware before doing the install.

It just looks like it is hanging on the formatting, it is in fact on the
next step when it hangs.  This never seems to time out, as I have left
the installer for 20 minutes and nothing proceeds past the 5% progress -
formatting of the last partition specified.

Dell 1501 laptop needing bcm43xx firmware for the wireless card.

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[gutsy beta] installer hangs when formatting partitions
https://bugs.launchpad.net/bugs/146687
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