Thanks for the feedback! If you can give the developer version a try it may have your fixes for the issue your seeing. The very latest version (0.5.0) can be found by following these instructions:
-> Browse to http://wordpress.org/extend/plugins/duplicator/developers/
-> Look for the section "Other Versions"
-> Click on "Development Version" and download the zip plugin file
-> Uninstall your current version and install this one
-> Note: This is a development line version so please test in your sandbox first to make sure you have no issues...
A few notes:
1. Check the mysqldump on the Settings menu if this is available on your server.
2. This next version has better processing logic for Step 2 so it should be a bit faster...
Let me know if this solves your issue...