For this release and the past few, the non-live cd (Gold) is the recommended method of installation.
The first thing to do when you have problems on a fresh installation of Gold, is to check your md5sums. There is a posted md5sum (f3cf3a7a352bb36757c2e21499762d73) that should match the .iso file you downloaded. Depending on how you burned the iso to CD, you can also verify the md5sum of the burnt CD.
I'm not sure what the recommended method is to verify the md5sum of your burnt CD, but I have a personal method to do so. Use the command-line burner software wodim to burn the iso to cdrom. Using this software will ensure that no extra "padding" is added that alot of the GUI burners put in. After burning the cd, you can read it back in and pipe it to md5sum as follows:
root:# dd if=/dev/cdrom | md5sum
dd: reading `/dev/cdrom': Input/output error
1426216+0 records in
1426216+0 records out
730222592 bytes (730 MB) copied, 182.553 s, 4.0 MB/s
The md5sum on the last line of output should be the same as the md5sum for your .iso file:
vector:$ md5sum VL/VL7.0-STD-GOLD.iso
This sounds like the kind of "oddball" error that I'd expect to be just a checksum problem. If your cd and iso md5sums check out and another attempt at installing hangs at the same spot, then something else is up.