The text installer hangs during installation on Alpha UDB after entering the new root password, regardless of what installation type is selected, or what installation method is used.
How much memory do you have?
I have the exact same problem on my Multia (166 MHz, 64 megs). I tried Red Hat 7.0, 6.2 and 6.1, all with the same problem.
What type of install are you performing (step by step instructions on how to reproduce always helps)?
I downloaded the generic.img and ramdisk.img files and dd'ed them to floppies, which I booted from ARM using "boot dva0 -flags 0". After a while (and a few soft errors), the kernel booted and asked for the ramdisk floppy, which I then inserted and pressed enter as instructed. I then followed the installation instructions as usual (installing from a Red Hat FTP site mirror through my masqueraded ADSL link). After entering the root password, the dialog box disappeared, but the "Set Root Password" title remained on the right side of the first line of the screen. I left it like that for the whole night, in case it was just stuck in molasse, but the next morning it was at the exact same place. The machine was not frozen, I could still switch VTs (this is a non-expert text-mode install). "cat /proc/loadavg" revealed a load of around 2. Rummaging through /proc, I found that the process that took the most CPU was "anaconda.real", or something similar. I also tried with 6.2 and 6.1, which got me the exact same results. Then I tried with 5.2, but I had a different problem (I was FTPing to my own server which had the CD-ROM mounted), where it couldn't set passive mode consistently on the same file (sounds like a different problem).
I am assigning this to an engineer. I'm reasonably certain, however, the UDB is not a supported platform for Red Hat Linux 7.
I have the exact same problem also with a Multia 166 MHz, 64 MB RAM, but with Red Hat Linux 7.1. I was doing this with a BSD disklabel for the partition table, and an FTP install to a server one switch away. No network traffic is captured between the Multia and the FTP server after the installer hangs.