I deleted laucher 2 and adw. I use the free version of launcher pro.
I have the correct batter and since it now installs i would say definatley a memory issue. you didnt mention uninstalling either launcher 2 or adw those are the larger apps espcially laucnher 2 delte one of those and try flashing the theme again.
Launcher 2 will not be available in 2.0 i have not seen 1 person mention it and its just too darn big and causing more problems thans it worth.
I had already uninstalled some system apps before posting sorry forgot to post that. I uninstalled some more like cpu boost, pandora, youtube and now it works. Only thing that doesn't work is the battery icon is not the luna one. It is blue in color and must be from another theme I had installed. It looks out of place but oh well at this point.
As for the terminal sitcking at 100% watching the number they will continue ot move termial does a poor job at the % thing it says 100% before it is completed we cant do anything about that but if you watch youll see the download number continue to go up.
I know you said you installed clean and if that is the case this should be a problem but.
If you look at the threads theres a thread that says please read this.
Also do this go to the uninstall apps they are located in the additional apps delete launcher 2 for sure if your not using it than delete the other things you dont use like the tutorial. and other things you dont use.
than try it again. what you are describing sounds exactly like a memory problem.