I have exactly the same problem on only 1 of 2 sites!
Both are running WP 2.8.4 one host is fast in updating (5 secs), the other site on a different host takes 3-5minutes and fails most often.
So I believe it depends on some access-rights …
Solved!
It was (a bug in) Outpost firewall!
I am using Windows7 64bit, and after upgrading to a newer version of Outpost the problem is solved.
Not the pages load with in 1-2 seconds and not 1-2 minutes!
Problem solved!
My php timed out. After changing the value in php.ini it’s fine!
I changed my setup using XAMPP, and everything went smoothly, until …
It’s still the same problem: my installation stops at ‘http://localhost/wordpress/wp-admin/install.php?step=2’. I never receive a password! Looking at the mysql-database now I have 10 EMPTY tables, i.e. no wp-users have been created.
Please help!