I’m having the same problem (hanging at the “Second Step” page). It does create the tables (I checked in MySQL, they’re there) but it won’t generate that username and password for me.
The funny thing is I installed another blog in a different folder the other day, and it worked just fine.
Make sure you’re actually serving the php file. You can’t just use File –> Open. You have to visit it through your browser so the PHP runs. Type in the actual URL where it is located.
