When it says, iFound New Devices and this will take 15 Secs... 15 Mins later and I rebooted the Machine.
Also the Boot Up when the GI is being loaded this takes upto 5 - 10 mins!
Is this just me...?
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I had the same problem I found a workaround to be mounting the cd at /usr/pluto/deb-cache and selecting internet install.