This can be caused by 2 things.

1- Software / hardware firewalls. if it's a win2003/2008 box, try to
disabled firewall on the source. If you have network firewalls make sure
that port 3275 TCP is open.
2- A specific data copying process is launched at the specific step
where data needs to be copied. This process can fail to start and thus
you will never see any progress in the data migration. It won't show in
the log either. This problem normally happen when someone mess up with
the local security policy (either locally or from an Active Directory

The data copying process need to have a specific privilege ( I think
it's running under 'network service'). So if someone remove that account
from the default security policy, it won't have enough privilege to
create it's process.

If the domain is part of the domain, you can ask for them to temporary
disable the GPO while you troubleshoot. You can compare the local
security policy of a standard windows install with your target server
and highlight the difference. Make sure you check anything that relates

this is why it's failing.

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