I have the same issue in Wubi while testing for Quantal Alpha 1.

Here is my report from testing:

Not sure if bug is entirely the same. Essentially, the symptoms are the same 
but on top of that I can't log in with username and password selected during 
install. System is apparently waiting for something with message about 
preparing for first run. I left it there for more than 1 hour. When trying to 
login in console (Ctrl + Alt + F2) system issues password incorrect message.
I noticed on terminal 7 a long list of errors.

Example: /usr/share/perl/5.14/Carp.pm has too many errors.
Compilation failed in require at /usr/share/perl/5.14/Tie/Hash.pm line 5

I tried to use explore2fs to read contents of root.disk but it doesn't
want to read the contents and shows empty disk.

UPDATE:
I had some time so I tried the install under Windows 8 RC in VirtualBox VM. I 
had the same error. Password was simple, no Unicode characters.

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https://bugs.launchpad.net/bugs/376120

Title:
  installing ubuntu stoped on "installing system" on 0% without any
  progress for half an hour

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