Deleted all partitions on drive.
Selected Guided use largest..
Changed root from ext4 to ext3.
now it has either hung at the 33% error or it's taking its time or ...
Rod, it is mkfs stuck waiting for user console input (like yes/no), you can do partitioning (select not to format) and run console before install, and run mkfs by hand to create filesystem, then go ahead and select install system.