khink,

Can you possibly try with a daily live CD?  There have been a number of changes 
to that code since 7.10 was released.  The daily CDs can be found here:
http://cdimage.ubuntu.com/daily-live/

Please run the installer in debug mode (`ubiquity --debug` in a terminal
window) and attach /var/log/syslog and /var/log/installer/debug to this
report following the instructions at
http://wiki.ubuntu.com/DebuggingUbiquity/AttachingLogs .  Please use a
non-sensitive password as it will be included in the logs.

Thanks!

-- 
hardy alpha5 install hangs on import step
https://bugs.launchpad.net/bugs/198293
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