I try to install arch on a clean system, i got 4 partitions 1 of them swap.
When i try installing the grub bootloader the installation program hangs.
I got an 60 gig IDE hard drive, and installed GRUB at the MBR.
Used the default menu.lst settings.
Using LILO everything works fine.
Maybe you should try the new isos posted in the forums. It solved my weird grub error 17 problems.
Hope this helps.
Thanks in advance!