The same problem has vexed me with PPM v2 with ActivePerls 5.6.1-626 and 5.6.1-631. on Win2k Pro, Win95osr2, and Win98se.

(My) experimentation has shown that (showed that for the installations I was working with) PPM will would install any number of (valid AS Win32)modules The First Time only. Subsequent attempts (to install AS Win32 modules, or even to update included standard modules) generate(d) the symptoms you describe, brother S.   The (pita) workaround that I found is to reinstall ActivePerl, after which you have One More Shot with PPM.   (lather, rinse, repeat)

I do almost all of my Perling on Debian, so haven't bothered to dig further.   As suggested by somemonk when this was mentioned a week or three ago in the CB, ActivePerl and Microsoft bugtrackings might be worth searching.

    hth (maybe a little anyway),
    Don
    striving toward Perl Adept
    (it's pronounced "why-bick")

_{Updates above in italic parens and strikethrough.   And I'm glad that crazy's response answered your question 8^)}