I just had the same problem (nice of HP not fix the error still 2 years later!)
In my case, the problem relates to the firewall. The original HP install file my abort or hang if your firewall is blocking it! Two options:
1) You can either disable your firewall when you install (but i didn't want to take that risk) OR
2) At the beginning of Setup, when it recommends you allow it to check the internet for updates, SAY NO!!! Then the install should complete and THEN you do Programs->HP and look for HP Update to do the update AFTER the install (not as part of the install!)
Hope that helps someone else. Worked for me!