The downloaded EXE is a self-extracting 7z archive that'll run/extract and kick off the actual setup program. If it's hanging during the self-extraction, check for an anti-virus app specifically scanning it. Because it has "setup" in the filename, Windows 7/Vista will automatically request elevation for the self-extractor (which will carry over to when the setup.exe starts).

File size for beta1 is 2,453,096,484 bytes and the md5 checksum is 4c4055c6d1bb738344f6b73b37328d56. If it's the correct filesize, but the wrong checksum, I would run the built-in memory diagnostics with Windows 7/Vista. Past experience has shown that memory errors which could otherwise pass unnoticed can get shown more readily in corruption of large downloads.

Kris

Nevermind, it was Kaspersky. It didn't close when I thought I disabled it. I had to go into kaspersky and disable protection while leaving it running.

Dwolf63 it has nothing to do with the file you are downloading. Maybe you could try to describe the problem a bit better. Have you tried to disable any virus protection software you have running?
It takes quite a while for the file to extract after you start the installation, have you tried just waiting a while? 

Waited and waited. Did what I could to disable virus check. IT finally did seem to start and then i got this message something about not having  priveleges or permissions it needed or something like that.

I am using an admin account. I even tried "run as administrator but that didn't do any good.