Trying to create new worlds, the client says Loading world followed right away with "Converting World" where it hangs. Another reply to my post says also happens with flat.
http://www.minecraftforum.net/topic/1536918-lockup-creating-new-world-142/
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Here is the seed I was trying: 268735068
Strongholds seem to get placed anywhere, even under water. It's villages that have restrictions.
In 1.4.2 strongholds can be generated in: desert, forest, extremeHills, swampland, taiga, icePlains, iceMountains, desertHills, forestHills, extremeHillsEdge, jungle, jungleHills. But maybe it's new in 1.4, this would explain why this bug wasn't found before.
EDIT: no, it's the same in 1.3.*. But it's only the center of stronghold that must be in these biomes. Some parts of it can extend to other biomes.
I could replicate it with large biomes. The patch I made for MC-767 fixes it, so it should be fixed in the next update.
I couldn't replicate it in superflat. What preset are you using?
I had made a post on the forms and someone replied saying they had a problem with flat. We thought it might be related. You would need to check with KyoShinda on the boards for the seed
http://www.minecraftforum.net/topic/1536918-lockup-creating-new-world-142/
Possibly related to MC-767. It happens when there is no valid position to place a stronghold (they can only be placed in certain biomes). In normal worlds it's pretty rare, but in large biomes and superflat it might be pretty common.