We've received a few corroborating reports of problems installing the AppleWorks 6.2.9 update.
Some users report an endless stall at the "Gathering Information" phase of installation, accompanied by the appearance of busy network activity. At least one user was able to work around this problem by temporarily disconnecting his Ethernet connection.
Meanwhile, Alexander Henket reports receiving an error message indicating that AppleWorks is not installed in its "default location."
Knowledge Base article #60372 states that AppleWorks should be installed from the original media in this case, but several many users received the software on their included system disks. If you're in this situation, you might want to try using Pacifist to extract only the AppleWorks .pkg file from your system disks.