I have seen this also on the mailing list, but with no answer: the hard disk upgrade hangs when rebuilding the rpm database; it says something about not being able to create a symlink to a partition that had already been mounted. If it matters, the files were on /usr/local/redhat, with /usr under a separate partition, and I tried to give both local/redhat and /local/redhat as paths. I tried with /var as a separate partition and as part of / If you are interested, I can retest and give you all the details. BTW The installer *really* doesn't like finding an unformatted ext2 partition: I admit it's not common to add a partition while upgrading the OS, but I never felt like breaking the uptime record just for adding some space...
*** This bug has been marked as a duplicate of 2504 ***