very odd that means you have some app conflicting with it...... what else do you have installed?
I just tried this for the first time on my Mogul, and I'm seeing the same thing. Install says it will complete after reboot, but there appear to be no files in the folders, and nothing in the registry or anything. After reboot, no sign of an installation to continue.
Currently running my first cooked rom (same base as take 3) with Ultimate Launcher, HHC, and a few other toys. Nothing I can think of that would conflict with Touchpal though.
Was thinking I might download the trial from the site and see if that makes a difference.