Lion upgrade seemingly hangs after reboot at the "Installing" prompt

I ran the Lion installer in the InstallESD.dmg file located on the desktop of my fully functional 10.6.8 installation.
The first part where the installer does various things, including "Downloading additional components", went well and completed with a Restart button, which I pressed.
Then the linen texture appeared with the big white Installing prompt and the blue-white candy/progress bar. But nothing else happens.
I left it for ten minutes and then pressed the power button on my Mac Pro until the computer shut off.Then started the computer again.
But I come back to the linen background and the candybar prompt.
Must I really wipe the drive and clone back 10.6.8 and start over?
Thanks for any ideas.
/p

I have tried the following, all without result:
- resetting the PRAM
- verifying the checksum of the downloaded Lion file
- installing on the bootdrive (SSD) to which I downloaded Lion (thinking that perhaps it must be installed on that drive)
- installing on an external harddrive by upgrading a Snow Leopard system with all updates
- installing on a second internal SSD by upgrading a Snow Leopard system with all updates
I'm completely at a loss and have no fraking idea what to do.
The reason I wish to upgrade is to be able to use Office for Mac which uses a Rosetta installer. Were it not for that I would happily have done a clean install. But since the upgrading goes so badly I guess I will have to buy the new Office.
Gah.

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