Removing Backup files on the B1 Install/Uninstall "Setup Status" window

I am having tremendous problems with the patch upgrade install/uninstall. I uninstalled my B1 client yesterday afternoon and when I left for the evening it had already been sitting on a window that said "removing backup files" for over an hour. It was still sitting on that form when I came in this morning. The cancel button didn't work so I had to end it via task manager. I then rebooted my PC and re-installed the client from the server B1_Shr folder. That went OK, but then I needed to apply a patch (2007A 00 49 - to match a customer's install). So I ran the server upgrade first & selected the server tools install option. It has now been sitting on that same "removing backup files" window for well over an hour.

Does anyone have any ideas on the cause, or how to get past this and continue or prevent it in the future?

Perhaps it's being caused by windows (xp pro sp 2) but either way I am really trapped right now.

Thanks!