[jggimi]

Step by step:

1. Boot 4.3 install media. Run installation script.
2. When partitioning OpenBSD, be sure to add a "b" partition for swap space. A general rule of thumb is 2X your RAM. For your configuration, then, set up a 512MB swap partition. You've had problems with the OS hanging up, and you've admitted you do not (or did not) have swap space configured.
3. Be sure to install all 5 X filesets. Do not leave any out. xbase, xetc, xshare, xserv, and xfont must all be installed.
4. When the script asks if you will be running X, tell it "Y"
5. After install, reboot and log in as root.
6. Set your PKG_PATH environment variable appropriately, per FAQ 15. e.g.:
   
   # export PKG_PATH=ftp://rt.fm/pub/OpenBSD/4.3/packages/i386/
7. Install gnome packages. At minimum, as has been described above, all you need do is:
   
   # pkg_add gnome-session
8. Use the adduser(8) command and set up a normal user. Log in as that user. Create an .xinitrc file with one line containing "exec gnome-session" in it. You can use an editor, such as vi(1) or mg(1), or you can use the echo(1) command and route the output to the file like this:
   
   $ echo exec gnome-session > .xinitrc
9. Start X:
   
   $ startx