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Well, not using LVM did behave the same (hangs right after uncompressing the kernel). So after that, instead of using the server CD, I tried the desktop CD (Live CD), and it booted fine from the CD. And then using the installer available on the desktop, it installed fine and the reboot worked...

Trying to install Dapper Drake (server CD, 6.06), I'm also getting the hangs on the "Uncompressing" bit. On the plus side, I was able to install Debian Sarge (3.1) without a hitch. I'm on a 20" Intel iMac with 2Gb RAM. I've tried various configurations (debian, 2.6 kernel, other) to no...