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I just played around with his phone for about 10 minutes. Making a long story short, it appears to be an issue with the storage card.
a) run install from storage card -> sits forever, never installs.
b) copy install from storage card to main memory -> sits forever, never installs.
c) copy install from storage card to main memory, remove storage card -> works fine.
strange you can copy files from the storage card just fine, but once you have the install moved to main memory - you have to remove the storage card prior to launching the install or it just sits there saying 'installing...' blah blah blah
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