Ok, I am no expert but decided to look at the install log, since I also had the same issue. Among all the cryptic entries (again no expert), I did see an entry regarding bad DNS, just right before the exit point of the install. So I figured, maybe my network card has an issue.
So this is what I did (which worked).
From windows 8.0 I went to store (again) and clicked the 8.1 update.
It did not need to download the whole thing since it was already downloaded.
The moment I saw that the status changed from downloading to something else, I switched to my desktop, device manager and disabled my network card.
I let the installation take its course.
Once finish, I re enabled my network card, and BAM, ALL SET :)
Non techie solution to an extremely annoying problem the techs can't seem to resolve :)