During replication, ArcFM constantly attempts to recover from a previous partial download, and seems to hang on checking files.
This issue typically manifests when there is a partially completed BITS job that Windows is trying to recover, and so Replication is waiting on that to finish.
The typical recommendation here is to use the BITSAdmin utility. If it isn't already on the machine (and it should be on Win XP SP3 and Win7), it should be downloadable here.
The usage guide is here: http://msdn.microsoft.com/en-us/library/windows/desktop/aa362813(v=vs.85).aspx but it should suffice to cancel the problematic job by running the command "bitsadmin /reset" in a command prompt.
After doing that, retry bootstrapping the client (or copying over the data manually). It should no longer hang during the Checking Files step.