We made a variety of improvements in Ubuntu 8.04
(https://blueprints.launchpad.net/ubuntu/+spec/networkless-installation-
fixes) which should help with network timeout problems like this. I
believe this should be fixed now.
The installation would in fact have finished eventually, but perhaps
only after a very long time.
** Changed in: ubiquity (Ubuntu)
Status: New => Fix Released
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Gutsy installation freezes at 82%
https://bugs.launchpad.net/bugs/155879
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