Specifying a non-empty directory

I am an Oracle DBA. I am having trouble installing Oracle 10g Release 10.1.0.3.0 on a Solaris 9 Intel x86 box. When I start the installation and reach the prompt to SPECIFY FILE LOCATION WINDOW, where I enter path=/export/home/u01/app/oracle and then press OK, I see a WARNING window that says "You have specified a non-empty directory to install this product. It is recommanded to specify either an empty directory or non-existent directory. You may however choose to ignore this message if the directory contains operating system generated files or subdirectories like LOST+FOUND. Do you want to proceed with the installation in this Oracle home?"

At this point I checked the space on the hard drive by using the command:

#df -h /export/home/u01/app/oracle

The outcome was:

FILESYSTEM   /dev/dsk/c0d0s7
SIZE         32G
USED         1.4G
AVAIL        30G
Capacity     5%
Mounted ON   /export/home

But here I see that I have enough space in the /export/home/u01/app/oracle directory, so I ignored the warning and pressed YES to proceed with the installation. After that point the installation went through fine, and I reached the window named SELECT DATABASE CONFIGURATION. In this window I selected the specific option and then pressed next, so the installation graph reached 87% (status was showing PROCESSING iSQLPLUS 10.1.0.3.0), and then afterwards it hung.

Please help me out in this situation.