Ok, I just tryed downloading the latest GA version of MySQL (v5.0) and I just downloaded your latest build 838 on a NEW MACHINE.
When I tryed the import it still hangs and goes to 99% CPU at 70%. I checked the physical memory and the machine had over 1 gig available at the time of the lockup.
Its the javaw thats eating the CPU not MySql. I then tryed changing the startupoptions.props in the BIN directory after I copied it and changed it to allow more memory 384 and again at 512 and it still locks in the same spot.
I'm not sure what it is but you do have a problem here. And I'm very concerned that if it locks up on a simple file import, that under heavy use it may lockup also. And that could be a major problem.
However, I've only been working with the app a few long days and your response to the questions and answers on these forums have been nothing short of fantasic and I thank you for it.
I also trust you'll find a solution soon. Its going to take a lot longer for us to build the app then it will take you to find this issue. Thanks again.