The first time, I think I left it a long time, i.e. hours. It would let me select which drive, but not which User; it would stall trying to bring up a list. I did the permissions correction you described, on the theory it couldn't hurt, and rebooted. I tried again, and I think I let it go for about 15-30 minutes. Even 5 minutes would be silly, I think.
When I used Migrate to move from my Panther setup to the newly installed Tiger, I don't remember how long it took to identify the list of Users and let me pick, but I think that's because it was nothing untoward.
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