[u]Welcome to the club.</u> I've complained to Palm about the quality of their software for years! Like you, I tend to get hang-ups on the install, and the Palm installation disc is equal-opportunity; I've had problems on at least 2 different Dell computers and one tablet. By the way, we're talking about a Tungsten e, here, so the software's not very old!
Best advice I can give you is to do a complete uninstall, followed by a search for any file which has "palm" in its name (Don't forget the "Palm" folder in the Program Files folder on your C drive). Also discard any profile save files, which typically get placed on your desktop during the uninstall. Don't forget to restart as part of this "cleaning" process!
Then, be sure to shut down as many processes as reasonably possible, especially your virus checker. (I've had an expert tell me that even when you disable the virus checker via the system tray, parts of it still are running... but I'm not quite that paranoid!)
Now start the install from scratch. If it hangs again, my advice would be to abort the installer, restart, and just see if it works. I had to do that at least once, and the software seemed to work OK even so. Maybe some backup files didn't get deleted, or something, but the application worked without any problems. Alternatively, you can try the uninstall, cleanup and install (again...).
Finally, don't forget to send Palm an e-mail telling them what a shoddy job they've done with this! The only way we'll get any change is if enough people complain about it...