Oh, running a VM on a pi, it had never occurred to me try that.
If it hangs again open a second terminal window and run the command sync. If that hangs or takes a long time then there is probably a problem with the card. The sync command flushes the disc buffers out onto the device so if it is already having difficulty writing then sync will hang till the current write completes, if it ever does.
@Colin@cymplecy and everyone else - I deserve right slap to wake up! It was indeed my power supply not good enough to get installation through!!! I have changed from less than 1A to 2.4A and it worked - installation went through and finished!!!
Colin - just to clarify - I was running VM on my windows PC