C:\Documents and settings\<account name>\Local Settings\Temp
In one of the logs you should see and error: SP2-0310: unable to open the file C:\Documents and settings\<account name>\Local.sql
If you go in the directory you should see the file Local.sql. Move that file into another folder and run the installation again.
If the installation freezes again, after you insert the Database credentials, wait 2-3 minutes Then kill the sqlplus.exe process and the installation should complete.