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I'm goign to guess that if the freezes only happen when installing from cd, that it's some sort of cd/cdrom issue. If you are installing any new games, the cd's are copyprotected and there are a lot of incompatible models that can't properly read those cd's. It's also possible that the cd's themselves (especially if they are burned copies) are dirty or are starting to deteriorate and causing read errors.
I have also noticed that some of the freezes during an install is related to something that the program is doing in the background, and that could make you see "freezes" when the install is still going but not showing any updates.
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