Xubuntu can be downloaded from here:
At one early stage you will be told the installer can't find a proper video mode, choose the
Stages such as "Detecting Hardware" will take ages but then it will be quick. I'm guessing something in the installation routine fails and has to wait until it times out before it proceeds.
I've install 2Gb of RAM in my 701 eeepc with relatively fast SD cards and USB sticks etc and it still takes ages on these points so I'm thinking it is a timeout period thing.