http://bugs.winehq.org/show_bug.cgi?id=25179
--- Comment #2 from Robert Riches rmriches@ieee.org 2010-11-14 22:08:41 CST --- The XIO lines appeared _AFTER_ I forcibly destroyed the application window. Based on all visible evidence, the XIO lines were a result of killing the application window, and not a result of whatever caused the installation to go CPU-bound for 5 minutes without making progress. In other words, the XIO lines are the result and after-effect of the problem, not an indicator of the cause.
I just tested four other applications with Wine 1.3.7, and they all installed and ran fine, which would appear to make it unlikely that there is a problem between Wine 1.3.7 and the X server.