I'm trying to install ESX4, but it stalls at 26% then slowly goes up to 29% and then nothing happens

This behavior has been observed both in text mode and graphical install mode. When running in text mode you can see that it stops while installing glibc (26%) and glibc-common (29%).

It's not known the exact reason why this happens, but it has been observed to happen when installing through ILO virtual media using the ActiveX control. If you mount the .iso file using the java applet instead it will work fine. Some also prefer to use an internal or external (physical) dvd drive in order to avoid these problems.

If you still experience random disconnects of the virtual media, it's probably caused by using a non 1.4.2_13 java version: http://h20000.www2.hp.com/bizsupport/TechSupport/Document.jsp?objectID=c01075687&lang=en&cc=us&taskId=101&prodSeriesId=1146658&prodTypeId=18964