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I have this exact problem (initializing services 28% ,etc), seems to only happen if the network has been brought up, works fine if network is down. I checked my host file, its fine. What could this be?
Geeks like you and I, Ray, wouldn't use KDE. However for normal people like my little brother and mom, Fluxbox, Windowmaker, etc are a bit scary. We are all aware of the other slimmer, slicker, and quicker graphical environments. So if you're going to share Linux as an alternative to MSWindows then you'll need to use KDE or Gnome, so KDE really is necessary and needs discussion.
As for the problem at hand, the hosts file, I changed the hosts file by reversing the order, instead of having localhost first:
This seems to happen when Linux is installed without a network connection (I had a bad network card). So try to install while connected to a LAN!