If it hangs again, i would try to add:-
 --debug 
at the end. It helped me a lot for paravirtual guests in nographics mode , 
HVM guest  by default uses graphical console at Dom0.
I would remove --vnc and try to add:-
--nographics --debug 
Two links may be helpful:-
http://www.opensolaris.org/os/community/xen/docs/virtinstall/
Search for "hvm" at the page:-
http://www.opensolaris.org/os/community/xen/docs/relnotes
 
 
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