Managed to track down the problem - one of the mods was trying to change client language to english, even though client is already in english and installer wasn not able to deal with that. Skipping that mod fixed the issue.
Problem solved.
Hi,
I cannot get past mod selection page, when I hit "Next", the window of installer just moves a bit and does nothing. Installed 1.7 version without problems last week, but I cant get 1.8 version to work.