I had the same problem and have written up the detailed solution on my own problem thread; but will share it again here. It looks like the issue is the shell is not starting (heap space error) so the installation won't complete it's last steps (which require running shell scripts). Don't know why.
Basically boot in "Safe Mode with Networking" and run setup then select reinstall on all the base files. For me this got me to the point where I could get basic Cygwin working again and I could get a command shell running (sometimes). While this didn't eliminate the heap space error, I was able to manage it's impact for the time being. You might also want to run the "cygcheck -s -v -r > cygcheck.out" command from the C:/cygwin/bin is a DOS or shell window and attach the cygcheck.out file to your email. It can help with the diagnosis. Sincerely, Brian S. Wilson =================================================================== Home: (678) 376-9258 Cell: (678) 232-9357 wil...@ds.net =================================================================== -- Problem reports: http://cygwin.com/problems.html FAQ: http://cygwin.com/faq/ Documentation: http://cygwin.com/docs.html Unsubscribe info: http://cygwin.com/ml/#unsubscribe-simple