FYI: I just had this exact problem installing from CD the released version of 
Gutsy (7.10) Kubuntu-Alt trying to install on an old Compaq Deskpro EN.   It 
stalled for several (five?) minutes with no disk (HDD or CD) activity, but then 
something "timed out" and installation continued.
So it may be sort-of fixed, but anxious people may abort the install 
prematurely if they don't wait until whatever it was times out.

Thomas Dzubin
Canada

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OEM install Ubuntu hangs @ 91% (setting up Linux-generic)
https://bugs.launchpad.net/bugs/123055
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