Most of the installation docs will guide you toward a minimum recommended memory size. For a full on GUI, 256 might indeed be tight. There are lighter weight GUIs out there but that is probably more of a headache than you want to deal with. Just wanted to verify though: the hanging was after the kernel booted and while the UI was coming up? And no errors on console or services still coming up ( e.g., and waiting a few minutes before they time out )?
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