After receiving Please wait while Setup copies files to your hard disk, Setup appears to hang?

There are a number of possible causes:

You started Setup from DOS mode.

You loaded the SMARTDrive tool and you used the following switches:
/x
/c
/l
InitCacheSize
WinCacheSize
/E:1024

You did not load Smartdrv.exe prior to running Winnt.exe.
To workaround the issue, run the smartdrv command without any switches.

NOTE: You may have to modify your Autoexec.bat file.