Odd that your PI goes unresponsive... Compiling can take some time on such a small cpu, don't forget. You might as well reformat and try again. Also, how big is your swap?
If you want to go the VM way, you can try this:
http://xecdesign.com/qemu-emulating-raspberry-pi-the-easy-way/Haven't tried yet, so not sure if it works, but it's worth a shot!
You can also try and OC the Pi a bit